Fuel Production Facility Loan Guarantee Program
BND may guarantee loans made to entities intending to construct agriculturally derived fuel production facilities in North Dakota. The program is intended to encourage lenders to provide financing to a fuel production facility by guaranteeing up to 25% of the debt involved in constructing the project. The maximum dollar amount of the guaranty on a single loan under this program may not exceed $12,500,000 and may be used in conjunction with other state and federal funding programs.
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Lead Lender - Any lending institution that is related or funded under the laws of North Dakota or the United States. Upon funding, the lead lender will be responsible for servicing the note and submitting a quarterly Fuel Production Facility Loan Guarantee Program Lender Payment History Form to BND throughout the term of the guaranty.
Borrower – The borrower can be any person or entity intending to construct and operate an agriculturally derived fuel production facility in the State of North Dakota pursuant to the North Dakota Century Code.
Guarantee - Bank of North Dakota may guarantee up to 25% of the amount of principal due the lender. The maximum amount of any guarantee on a single loan may not exceed $12,500,000.
Term - The guarantee term may not exceed 15 years.
Guarantee Fee - The initial guarantee fee is 2.5% of the guaranteed portion on the note and is due at loan origination. The guarantee fee may be included as an eligible use of the loan proceeds. An on-going guarantee fee equal to .50% of the guaranteed portion of the loan will be due annually throughout the term of the note.
Application Process - Application by a lead lender is required to apply for BND's guarantee. See application for additional documentation required when submitting a request to BND. The lead lender is responsible for servicing the loan.
Interest Rate - The originating lender’s rate of interest on the note must be acceptable to BND. The on-going annual guarantee fee may be included in the rate charged by the lender.
Other Features - This program can be used in conjunction with other BND loan programs. The Bank may not guarantee more than $25,000,000 at any one time under this program. The program expires July 31, 2013.
For more information please contact us at:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5777
1-800-472-2166 ext. 5777
TDD (Telephone Device for the Deaf) 1-800-643-3916
