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