Family Farm Loan Program
The Family Farm Loan Program allows a farmer to purchase or refinance land, equipment or livestock or to restructure operating debt.
The borrower is a farmer or rancher who is a North Dakota resident with farming experience and training to operate a family farm and to make proper use of the loan. The applicant’s net worth may not exceed $1,500,000.
Proceeds may be used for:
- Purchase or refinancing agricultural real estate
- Permanent improvements to agricultural real estate
- Purchase or refinancing farm equipment
- Purchase or refinancing livestock
- Restructure of operating debt carryover
BND’s participation amount is limited to the lesser of $750,000 or 90 percent of the total loan amount.
Interest rate: The interest rate on BND’s percentage will float at 1.00% below BND’s base rate. The interest rate will never exceed 11.00%.
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% on variable rate loans and 3.50% over the corresponding Federal Home Loan Bank Advance Rate on fixed rate loans.
Fees: No fees are charged by BND.
BND uses its normal credit standards in reviewing the loan.
The collateral used to secure the loan depends upon the intended use of the proceeds.
- Real estate: A first real estate position on the real property which is the subject of the loan as well as an assignment of rents is required.
- Equipment or livestock: A first lien on the equipment or all livestock.
Appraisal requirements are evaluated on a case-by-case basis.
BND’s participated loan amount may not exceed 90 percent 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.
|Maximum term (years)||Loan to value|
|Restructure operating debt||5||85%|