The Envest Loan is to purchase shares in an ag processing plant intended to process North Dakota products or for the purchase of equity shares in a North Dakota feedlot or dairy operation that feeds a byproduct of an ethanol or biodiesel facility.
The borrower must be a North Dakota resident who owns no more than 25 percent of the project. It is desirable that the plant be located in North Dakota, however, exceptions may be made based on the overall economic benefits to the state. Project ownership may be other than a cooperative business structure if the intent of this loan program is met.
- Purchase shares in an ag processing plant intended to process North Dakota products
- Purchase of equity shares in a North Dakota feedlot or dairy operation that feeds a byproduct of an ethanol or biodiesel facility
The maximum loan amount is negotiable.
Interest rate: The interest rate on BND’s portion is to float at BND base rate less 1.00%. The interest rate charged by the lead financial institution on its share of the loan may not exceed BND’s base rate plus 2.00%.
The lead financial institution and BND set the interest rate to be yielded by the lenders.
For feedlot/dairy operations feeding a byproduct of an ethanol or biodiesel facility: Borrowers are eligible for an interest buydown of up to 4.00% which may be used to reduce the borrower’s interest rate on loans made by a local lender and BND, subject to a minimum rate of 1.00% to the borrower.
The total buydown amount per borrower may not exceed a lifetime cap of $20,000. A farmer that receives interest buydown from the Ag PACE fund is not eligible to receive interest buydown under ENVEST for funds to be invested in the same project.
Fees: An origination fee will be charged by BND.
BND uses its normal credit standards in reviewing the loan. These standards include loan size and type of project.
Adequate collateral is required.
Appraisal requirements are evaluated on a case-by-case basis.
BND will participate in up to 70% of the total loan amount. Borrower must work with a local lender to submit the loan application. Lead lender is responsible for servicing the loan.
Loan term is 5-7 years, depending on the security offered. Principal payments may be deferred up to two years; however, interest must be paid at least annually.
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