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Livestock Loan Guarantee Program
Borrower - The owner of a commercial livestock feeding operation or to the owner
of a new or expanding dairy operation. The commercial feeding operation
must be approved and operating under the rules established by the North
Dakota Department of Health.
GUARANTEE FOR LIVESTOCK PURCHASE - A loan guarantee means an agreement that in the event of default under
the promissory note, the Bank shall pay to the lender the amount agreed
upon, provided that the amount may not exceed 85% of the principal due
the lender at the time the claim is approved by the Bank.
Feeder Livestock:
- Term - The loan guarantee may not exceed 2 years.
- Maximums -The maximum loan amount may not exceed 85% of the total of the purchase price of the feeder livestock and estimated cost to bring the feeder livestock to projected weight. The Bank may require price protection and insurance at a level satisfactory to the lenders. The maximum guarantee amount will not exceed $1,000,000 per commercial livestock feeding operation.
- Fees -The bank will charge a guarantee fee as a percentage of the loan guarantee
amount.
Dairy Cattle:
- Term - The loan guarantee may not exceed 7 years.
- Maximums - The maximum loan amount may not exceed 75% of the total purchase price
of dairy cattle. The maximum guarantee amount will not exceed $1,000,000
per dairy operation.
- Fee - The bank will charge a guarantee fee as a percentage of the loan guarantee
amount.
GUARANTEE FOR EQUIPMENT PURCHASES OR CONSTRUCTION OF FACILITIES AND IMPROVEMENTS
- A loan guarantee means an agreement that in the event of default under
the promissory note, the Bank shall pay to the lender the amount agreed
upon, provided that the amount may not exceed 75% of the principal due
the lender at the time the claim is approved by the Bank.
- Term - The loan guarantee may not exceed 15 years.
- Maximums - The maximum loan to collateral valuation may not exceed 75%. The maximum
guarantee amount will not exceed $5,000,000 per livestock feeding operation
or dairy operation.
- Fees - The bank will charge a guarantee fee as a percentage of the loan guarantee
amount.
An Application by a lead lender is required for BND's participation. See application for additional documentation required when submitting a request to BND. Lead lender is responsible for servicing of loan.
For more information about this program or other Bank of North Dakota programs,
contact:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5672
1-800-472-2166 ext. 5672
TDD (Telephone Device for the Deaf) 1-800-643-3916
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