Presented by
Bob Humann, Senior Vice President Lending ServicesBank of North Dakota
December 2013
Financing your ideas and innovations
Financing a value-added processing business
Member investment• Cash• BND Programs
• Ag PACE Loan • Envest Loan
NDDF and/orRegional Councils Subordinated debt
• SBA 504 Program• NDDF and/or Regional
Councils
Business
Equity 40%
Bank debt Lead Bank and BND partner• BND Programs
• Ag PACE Loan• BioFuels PACE Loan• USDA Loan Guarantee
Debt financing 60%
Ag PACE: $20K/borrower, 4% interest buydown
Envest: 1% below BND’s Base Rate (3.25-1.00=2.25%)
Biofuels PACE: $250K/project; 5% interest buydown
PACE: $300K/project; 5% interest buydown
Ag PACE
North Dakota farmer can use for
• Sideline business other than traditional agriculture
• Develop new irrigated acreage• Purchase equity shares in a value-added processing
business• Purchase capital improvements for retention of livestock or
dairy operations• Purchase equity shares in a condominium grain storage
entity• Develop subsurface field tiling projects
Ag PACE• $2 million fund
• BND 50% - 80% of total loan
• Interest buydown 4% below yield rate
• Maximum per borrower of $20K per biennium; $60K lifetime cap
Note: Interest buydown dollars exceeding $20K must have a net worth of less than $1M
• Loan terms: 5-15 years
• Collateral: Other than equity shares
Envest• North Dakota resident can use to
• Purchase shares in a start-up or expansion of ag-processing plant that processes ND-grown products
• Purchase shares in a ND feedlot or dairy operation that feeds byproducts of an ethanol or biodiesel facility
Envest• Borrower may not own more than 25% of project
• BND participates up to 70% of total loan
• Interest rate: BND share is BND base less 1%, variable• Shares in ND feedlot or dairy operation that feeds byproducts of
an ethanol or biodiesel facility: Interest buydown of 4%
• Total buydown amount per borrower may not exceed a lifetime cap of $20K
• A farmer that receives interest buydown from Ag PACE Fund is not eligible to receive interest buydown under Envest for funds to be invested in the same project
• $1 million in buydown funds available from the Beginning Farmer Revolving Fund
• Loan term: 5-7 years
• Collateral: Other than equity shares
For more information
Bob Humann, Senior Vice President Lending Services, Bank of North [email protected]
BND Ag Lending Staff Members
Mark Weide, Manager [email protected] 701.328.5790
Loan Officers
Annette Curl, northeast ND [email protected] 701.328.5786
Jim Leier, southwest ND [email protected] 701.328.5802
Bruce Schumacher, southeast ND [email protected] 701.328.5668
Rod Thorson, northwest ND [email protected] 701.328.5635