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SBA Guaranteed Loan Purchase Program
The SBA Loan Purchase Program is designed to provide low interest rate loans to North Dakota businesses receiving a SBA loan guarantee. This program permits BND to purchase the SBA guaranteed portion of the loan.
BND will purchase, at par, the SBA guaranteed portion of any loan. BND's purchase is conditioned upon the borrower receiving the benefit of the lower interest rate.
Qualifying Requirements
Borrower - Companies qualifying for this program shall be involved in production, manufacturing, processing or retail trade.
Loan Limit - There are no maximum loan parameters for borrowing under this program.
Use of Proceeds - Loan funds may be used for the purchase or refinancing of real property and equipment, expansion of existing facilities and working capital requirements, including inventories.
Application Process
Application by a lead lender is required for BND's participation. Lead lender is responsible
for servicing the loan. Financial information on the borrower is not necessary.
Interest Rate
BND will purchase at a variable or fixed rate option. The fixed rate option is equal to BND's Guaranteed Fixed Rate Index. If the term of the loan exceeds five (5) years, only the first five (5)
years can be set at the fixed rate option. Thereafter, the loan will readjust.
The variable rate option is 1.50% below Wall Street Journal Prime, adjusted
daily, monthly, or quarterly. Service fees as described below will be added
to BND's net rate options.
BND's purchase is conditioned upon the borrower receiving the benefit of the lower interest rate.
Fees
An originating bank may change a service fee up to .5%. In addition, the
SBA requires an ongoing guarantee fee of .50%. These fees are added to
the rate options listed above.
BND is to receive a $250.00 set up fee.
Repayment Terms
The term of the loan is contingent upon the agreement set between the borrower and SBA.
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) 328-5786
1-800-472-2166 ext. 5786
TDD (Telephone Device for the Deaf) 1-800-643-3916
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