Q: Interest rate and fees

Interest rate : The interest rate on BND’s participation percentage shall be variable at 1.00% below BND’s base interest rate . The interest rate charged by the local lender on its percentage may float with BND’s base interest rate , but may not exceed BND’s base interest rate by more than 2.00%. Fees : No origination fee is charged by BND.

Question 1

How to apply

Accepted Answer

BND offers this loan by partnering with local lenders. To apply, contact your lender.

If you have any questions, contact us or call (701) 328-5795.

Question 2

Forms

Accepted Answer

Bank Participation Loan Application (PDF)
Loan Renewal Application for Existing Participations (PDF)

To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions.

If you are not able to access a PDF, please contact us for assistance.

Question 3

Description

Accepted Answer

This loan assists farmers and ranchers with operating loans.

Question 4

Eligibility

Accepted Answer

The borrower is a farmer or rancher who is a North Dakota resident and owns/operates an existing farm or ranch. The borrower’s debt-to-asset ratio must exceed 50% or the borrower must have a net worth of less than $1,500,000.

Question 5

Use of proceeds

Accepted Answer

Proceeds may be used for the current operating year of an existing farm or ranch. The loan may not be used for payment of delinquent debt, interest payment, principal payment or capital expenditure.

Question 6

Loan amount/limit

Accepted Answer

BND’s participated share is limited to the lesser of $750,000 or 65% of the total loan amount.

Question 7

Interest rate and fees

Accepted Answer

Interest rate:

The interest rate on BND’s participation percentage shall be variable at 1.00% below BND’s base interest rate. The interest rate charged by the local lender on its percentage may float with BND’s base interest rate, but may not exceed BND’s base interest rate by more than 2.00%.

Fees:

No origination fee is charged by BND.

Question 8

Lending criteria

Accepted Answer

BND uses its normal credit standards in reviewing the loan. These standards include loan size and type of project.

Question 9

Collateral

Accepted Answer

Collateral may be crops, livestock or equipment liens. A pledge of FSA payments and assignment of crop insurance is required when available. Depending upon the circumstances of a loan, additional security may be requested.

Question 10

Participation requirements

Accepted Answer

BND’s participated loan amount may not exceed 65% 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.

Question 11

Loan terms

Accepted Answer

The maturity date of this loan may not exceed one year. No renewal or extension may be approved beyond the initial maturity date of the loan except in the case of a livestock producer retaining ownership. All advances are made and payments received on a pro-rated basis.

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