Government Guaranteed Loans for Lenders
For those financial institutions making use of the federal guaranty programs of the Farm Service Administration (FSA), Small Business Administration (SBA) or, USDA Rural Development (RD), Bank of North Dakota offers government guaranty purchase options. These programs serve two purposes. The first is to provide a below market rate of interest to start-up or troubled borrowers within the state. The second is to provide a source of liquidity for financial institutions.
The agricultural sector is served by the Government Guaranteed Loan Purchase Program which allows BND to purchase the guaranteed portion of a fully funded FSA or RD loan. The below market rate on BND’s purchase is set to provide interest rate assistance to a North Dakota farmer or rancher experiencing cash flow difficulties.
The SBA Loan Purchase Program is also designed to provide lower interest rates to a business operating within the state. Bank of North Dakota’s purchase is conditioned upon the firm authorization of the SBA guaranty, and also requires the benefit of the lower interest rate to be passed on to the borrower.
The Export Enhancement Program is a financing tool for foreign buyers purchasing equipment from North Dakota manufacturers. The Ag Commodity Export Enhancement Program is a financing tool for commodity exporters to facilitate export sales to foreign buyers.
For more information please contact us at:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
800.472.2166 ext. 328.5671