Family Farm Loan Program
The North Dakota legislature developed a program to help family farms. This program allows BND to participate in loans for qualified purposes up to 90% of the loan amount.
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Qualifying Requirements:
Borrower - A borrower is a "farmer" who is a resident of the state and is at least eighteen (18) years old. The applicant must have the farming experience and training necessary to operate a family farm and to make proper use of the proceeds of the loan.
Net Worth - The net worth of the applicant does not exceed $500,000.
Local Lender - A local lender is required to initiate the loan participation and is responsible for servicing the loan.
Use of Proceeds - BND participates in loans in the following categories:
- Purchase or refinancing of agricultural real estate
- Permanent improvements to agricultural real estate
- Purchase or refinancing of farm equipment
- Purchase or refinancing of livestock
- Restructure of operating debt carryover
Collateral - The collateral used to secure the loan depends upon the intended use of the proceeds.
Real Estate - A first lien on the real property which is the subject of the loan as well as an assignment of rents is required. In addition, an acceptable appraisal of the property is required.
Equipment or Livestock - A first lien on the equipment or all livestock of like kind. In addition, an acceptable appraisal is required.
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 of loan.
Interest Rate
The interest rate on BND's percentage will float at 1% below BND's base rate. However, at no time will the interest rate exceed 11%.
The maximum interest rate on the lead lender's percentage shall not exceed BND's base rate plus 3% and may float.
Repayment Terms
| |
Maximum Term (years) |
Loan to Value |
| Real Estate Loan |
30 |
75% |
| Farm Equipment Loan |
7 |
75% |
| Livestock Loan |
7 |
75% |
| Restructure Debt |
5 |
85% |
Total Loan Amounts
There is no total loan limitation. BND's participated share is limited to the lesser of $400,000 or 90% of the total loan amount.
Fees
There is no origination fee charged by BND.
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
