FSA Guaranteed Loan Purchase Program
The FSA (Farm Service Agency) Guaranteed Loan Purchase provides low interest rate loans to North Dakota farmers with bank financing that includes a loan guarantee from a federal government program. BND participates by purchasing the guaranteed portion of the promissory note. The purchase is conditioned upon the borrower receiving the benefit of the lower interest rate on the purchased portion of the note.
BND will purchase Government Guaranteed Loans providing interest rate assistance to borrowers who are experiencing cash flow difficulties.
Must be a North Dakota resident with an FSA guarantee; line of credit guarantees cannot be purchased. (Contract of Guarantee)
FSA-guaranteed portion of the loan
Interest rate: BND purchases the loan guarantee at a fixed or variable rate which is established at the time of funding. Rate must be in compliance with FSA policy. Service fee must not exceed .50% and may be added to BND’s net rate options. Click here for BND’s Guaranteed Loan Purchase Program Rates.
Fees: The originating lender may charge the borrower an origination fee as may be allowed by FSA. The lead lender may also add a servicing fee on the guaranteed portion purchased by BND.
Assignment of FSA guarantee
Borrower must work with a local lender to submit the loan application. Lead lender is responsible for servicing the loan.
Loan terms are based on FSA loan guarantee terms.