Welcome to Lending Services!

On behalf of the State of North Dakota, the Bank administers several lending programs that promote agriculture, commerce and industry.

Financing economic development is the thrust of Bank of North Dakota’s efforts. The Bank is specifically authorized to assist numerous other financial institutions in providing financing to stimulate economic development in the state.

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Legislative Changes:

During the past year BND has been working on a number of loan program changes and legislative changes to better meet the needs of North Dakota citizens and our lending partners. To learn more about these changes, please click the following link: BND 2009 Legislative Program Changes.

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Farm Disaster Assistance:

Farm Disaster Ag PACE Loan Program

This program provides new loans to assist farmers and ranchers that have been impacted by weather related events during the winter of 2008-2009 and spring of 2009. Click the following link to learn more about the Farm Disaster Ag PACE Loan Program.

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Trade Area:

BND's primary trade area is the State of North Dakota. While not prohibited by law from reaching beyond the State's boundaries, BND will not make nor participate in loans to borrowers whose residence or place of business is outside of the State unless it can be shown that the benefits of a loan will flow to the State or its residents, BND will consider a loan participation outside of the State.

Loan Application:

All loans are reviewed on an individual basis to ensure the general credit standards of BND are met. All loans require an identified purpose and a specific source of cash flow which reasonably assures repayment of the loan.

Each loan program has specific requirements for the appropriate application procedure: (1) directly by the borrower or, (2) through a local lender. In either case, the application should include sufficient information to allow BND to properly evaluate the merits of the loan. Business and personal financial statements, projections, and other supporting data as described in the Information section of each loan program are required for all applicants. The required information should not exceed what is needed by any conventional lender to properly evaluate a loan request.

Type of Lending:

BND is involved in two types of lending: direct lending and participation loans.

BND by satute can do anything any other bank can do, unless restricted by statute. Mostly by practice we do not make direct loans. However, legislative action has given express lending authority to BND for:

• The purchase or acquisition of bank stock or the formation of a bank holding company.
• The acquisition or refinancing of farm real estate by qualified individuals.
• Assistance with post secondary educational costs (i.e., student loans).

All other lending by BND is through participation with a lead financial institution. This lead lender can be any qualified financial institution - most notably a bank, savings and loan, credit union or Farm Credit Services.