ENVEST Program (Value-Added Agriculture Equity Loan Program)

Lead Lender - The lead lender may be a bank, bank holding company, state or federally charted lending agency or institution, or any other financial institution.

Borrower - The borrower must be a North Dakota resident. To be eligible under this program, the borrower may own no more than 25% of the project.

BND Funding Limit - BND's funding limit is up to 70% of the total loan amount.

Use of Proceeds - The proceeds of the loan shall be used to purchase shares in an ag processing plant intended to process North Dakota grown products. It is desirable that the plant be located in North Dakota; however, exceptions may be made based on the overall economic benefits to the state. Project ownership may be other than a cooperative business structure if the intent of this loan program is met.

Additional Parameters - An additional use of loan proceeds is for the purchase of equity shares in a North Dakota feedlot or dairy operation that must feed a byproduct of an ethanol or biodiesel facility. Loans approved for this purpose are eligible for an interest buydown of up to 5% which may be used to reduce the borrower’s interest rate on loans made by a local lender and BND. The total buydown amount per borrower may not exceed a lifetime cap of $20,000. A farmer that receives interest buydown from the Ag PACE fund is not eligible to receive interest buy down under ENVEST for funds to be invested in the same project. The lead financial institution and BND set the interest rate to be yielded by the lenders. The difference between the interest charged by the lenders (yield rate) and that paid by the borrower (borrowing rate) is provided to the lenders by one of the funds.

Interest Rate - The interest rate on BND's portion is to float at BND base rate less 1%. The interest rate charged by the lead financial institution on its share of the loan may not exceed BND's base rate plus 3%.

Term - The term of the loan will be five to seven years depending on the security being offered. Principal payments may be deferred up to two years; however, interest must be paid at least annually.

Application Process - Application by a lead lender is required for BND's participation. See application for additional documentation required when submitting a request to BND. The lead lender is responsible for servicing the loan.

Collateral - Adequate collateral is required. Acceptable collateral may consist of equipment, farm land or similar items with a determinable market value.

Credit Criteria - The borrower must meet the Bank's standard credit criteria including demonstrated repayability of all debt.

Maximum Amount - The maximum loan amount is negotiable.

For more information please contact us at:

Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5624
1-800-472-2166 ext. 5624
TDD (Telephone Device for the Deaf) 1-800-643-3916