presented by bob humann, senior vice president lending services bank of north dakota

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 Dakota701.328.5703bhumann@nd.gov

BND Ag Lending Staff Members

Mark Weide, Manager markweide@nd.gov 701.328.5790

Loan Officers

Annette Curl, northeast ND acurl@nd.gov 701.328.5786

Jim Leier, southwest ND jleier@nd.gov 701.328.5802

Bruce Schumacher, southeast ND bxschumacher@nd.gov 701.328.5668

Rod Thorson, northwest ND rdthorson@nd.gov 701.328.5635