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Presented by Bob Humann, Senior Vice President Lending Services Bank of North Dakota

Financing your ideas and innovations. Presented by Bob Humann, Senior Vice President Lending Services Bank of North Dakota December 2013. F inancing a value-added p rocessing b usiness. Business. Debt financing 60%. Equity 4 0%. Member investment Cash BND Programs Ag PACE Loan

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Presented by Bob Humann, Senior Vice President Lending Services Bank of North Dakota

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  1. Financing your ideas and innovations • Presented by • Bob Humann, Senior Vice President Lending Services • Bank of North Dakota • December 2013

  2. Financing a value-added processing business Business Debt financing 60% Equity 40% • Member investment • Cash • BND Programs • Ag PACE Loan • Envest Loan • Bank debt • Lead Bank and BND partner • BND Programs • Ag PACE Loan • BioFuels PACE Loan • USDA Loan Guarantee NDDF and/or Regional Councils • Subordinated debt • SBA 504 Program • NDDF and/or Regional Councils 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. For more information Bob Humann, Senior Vice President Lending Services, Bank of North Dakota 701.328.5703 bhumann@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

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