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The Commercial Bank Participation Loan Program is generally “market driven” in terms of the

rates, terms and conditions offered to a borrower. In most instances, BND’s participation under

this program is needed to assist a financial institution with a borrower whose financing needs

have outgrown the legal lending or exposures limits of the originating lender.

Small Business

BND has a variety of small business programs available. Listed below is a short summary of each.

Business Development Loan Program

o

The Business Development Loan Program assists new and existing businesses in

obtaining loans that would have a higher degree of risk than would normally be

acceptable to a lending institution.

Beginning Entrepreneur Loan Guarantee Program

o

This program assists in business start-up financing by providing a financial institution

with an 85% guaranty of a loan not to exceed $100,000.

Ag PACE Program - (Agriculture Partnership in Assisting Community Expansion)

o

The Ag PACE program provides interest buydown on loans to farmers who are investing

in nontraditional agricultural activities to supplement farm income. The program funds

are used to reduce the interest rate on loans which have been approved by a local

lender and BND. The farmer shall have as his principal occupation, prior to applying for

the program, the production of agricultural commodities or livestock.

PACE Program - (Partnership in Assisting Community Expansion)

o

The PACE Fund assists North Dakota communities in expanding their economic base by

providing for new job development.

The PACE program has two major elements: (1) the participation by BND with a local

lender in a community based loan, and (2) the participation by the PACE Fund with the

local community in reducing the borrower's overall interest rate.

Flex PACE Program

Qualified Businesses - The Flex Pace feature of the PACE program provides interest buy

down to borrowers that do not fit into the traditional definition of a PACE qualifying

business. Under Flex PACE, the community determines eligibility and accountability

standards. Flex PACE allows communities the ability to provide assistance to borrowers

with a business focus or need outside of the current requirements of PACE, such as jobs

retention, technology creation with no new jobs, retail, smaller tourist businesses and

essential community services.

5 Find Bank of North Dakota @ www.banknd.nd.gov

Guarantee Programs for Businesses

The Beginning Entrepreneur Loan Guarantee Program

o

This program assists in business start-up financing by providing a financial institution

with an 85% guaranty of a loan not to exceed $100,000.

Business Incentive Programs

In partnership with an originating lender, BND takes a lead role in providing loan programs to

encourage the creation of new wealth, expanded employment opportunities and farm income

diversification.

PACE Program

o

PACE is available to finance the purchase of equipment or real estate, as well as term

working capital. In conjunction with community support, the program provides an

interest buy down that can reduce the borrower's rate of interest by as much as 5%.

This buy down can mean an interest savings of approximately $462,000 over the term of

the loan. In return, the borrower must create one new job in North Dakota for each

$100,000 of total loan proceeds. The PACE program now includes features outlined

under the Flex PACE Program and Biofuels PACE Program.

MATCH Program

o

MATCH supports the funding needs of a borrower whose financial capacity is very

strong. This strength must be evidenced by a long-term credit rating of A or better as

determined by a national rating agency. For the qualifying borrower, BND offers a rate

of interest equal to .25% to .50% over an equivalent term U.S. Treasury Note. The rate

can be fixed for as long as five years, or may be reset annually.

New Venture Capital Program

Administered by the North Dakota Development Fund, the New Venture Capital Program

through the BND is an innovative financial program that provides flexible financing through debt

and equity investments for new or expanding businesses in the state of North Dakota. BND can

fund rapidly growing companies which require equity funding.

Government Guaranteed Loans for Lenders

Bank of North Dakota offers government guaranty purchase options for those financial institutions

making use of the federal guaranty programs of the Farm Service Administration (FSA), Small Business

Administration (SBA) or, USDA Rural Development (RD). These programs serve two purposes. The first is

to provide a below market rate of interest to start-up or troubled borrowers within the state. The

second is to provide a source of liquidity for financial institutions.

6 Find Bank of North Dakota @ www.banknd.nd.gov

• Government Guaranteed Loan Purchase Program

The agricultural sector is served by the Government Guaranteed Loan Purchase Program which

allows BND to purchase the guaranteed portion of a fully funded FSA or RD loan. The below

market rate on BND's purchase is set to provide interest rate assistance to a North Dakota

farmer or rancher experiencing cash flow difficulties.

• SBA Loan Purchase Program

This program is designed to provide low interest rates to a business operating within the State.

Bank of North Dakota's purchase is conditioned upon the firm authorization of the SBA

guaranty, and also requires the benefit of the lower interest rate to be passed on to the

borrower.

Community, Rural, and Regional Development Loan Funds

BND manages several special loan funds for the State of North Dakota. BND administers these funds in

compliance with requirements established by the agency for which BND manages the fund or by the

legislature.

• Community Water Facility Revolving Loan Fund

This program was established to provide financing for community water projects when the

project is above the maximum loan limits set by Rural Development. It is also the intent of this

program to provide supplemental financing for federal loan programs associated with

community water projects. Loans from this fund are made in accordance with N.D.C.C. Chapter

6-09.5.

• Developmentally Disabled Facility Loan Fund

This fund assists in the construction of facilities to house and train the developmentally

disabled, the chronically mentally ill, and the physically disabled persons throughout the State of

North Dakota.

• Health Information Technology Fund

The Bank administers a $5,000,000 Health Information Technology Planning Loan Fund

established by N.D.C.C. § 6-09-43 for the purpose of providing low-interest loans to health care

entities to assist those entities in improving health information technology infrastructure. This

fund is a revolving loan fund.

7 Find Bank of North Dakota @ www.banknd.nd.gov

Bank Stock/Trust Preferred Securities Financing Loan Program

BND’s Bank Stock Loan Program provides financing options to accommodate the acquisition or

refinancing of bank stock of a North Dakota financial institution. The Trust Preferred Securities Financing

Program (or TPS) may provide financing to an investment company created to complete a trust

preferred securities transaction for the benefit of a financial institution located within the state.

Under either loan program, BND is typically a direct lender, but may be a participant in a loan originated

by another financial institution.

Residential Loans - secondary single family mortgage market

The Residential Real Estate Financing Program provides a for

financial institutions located in North Dakota and offers the people of North Dakota the opportunity of

keeping their mortgage loan servicing in North Dakota.

Banking Services

Bank of North Dakota is a Correspondent Bank for most financial institutions in North Dakota. In this

role, the Bank provides a secure, cost-effective service with high availability of funds. Currently, the Bank

electronically processes more than 3 million items per month. BND also provides services for a number

of state agencies.

Cash Management for Respondent Banks and State Agencies

BND offers its Direct Cash Management System. This process enables customers from financial

institutions, and other eligible corporate and state institutions, the ability to access or obtain

information for managing BND accounts. Services include online wire transfer options, transfers

between multiple accounts, intra-day account balance information and customized reports.

Correspondent Banking Services

• Automated Clearing House - BND Automated Clearing House (ACH) software is

designed to electronically originate and receive automated clearing house items.

Through our network system, any financial institution in the state can offer its

customers the convenience of ACH.

• Check Clearing - BND serves as North Dakota's Central Clearing House for both in-state

and out-of-state items and assures quick exchange of all checks and drafts. Services and

products include Check Clearing (Image Exchange Services), Paper Check Processing,

and Return Item Service.

• Federal Reserve Bank Settlement Program - BND participates in the Federal Reserve

Bank Settlement Program. Under this program, respondent institutions can utilize BND's

account at the Federal Reserve Bank for automatic charge or credit of services with the

Federal Reserve Bank. BND, in turn, will charge or credit the respondent's account at

BND.

• Financial Institution Currency Program - BND provides coin and currency to financial

institutions within the state of North Dakota that maintain accounts with our bank. This

process enables these institutions to obtain coin and currency to meet the needs of

their depositors.

8 Find Bank of North Dakota @ www.banknd.nd.gov


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DETTAGLI
Corso di laurea: Corso di laurea in servizio sociale
SSD:
Docente: Soci Anna
Università: Bologna - Unibo
A.A.: 2011-2012

I contenuti di questa pagina costituiscono rielaborazioni personali del Publisher Atreyu di informazioni apprese con la frequenza delle lezioni di Elementi di economia e studio autonomo di eventuali libri di riferimento in preparazione dell'esame finale o della tesi. Non devono intendersi come materiale ufficiale dell'università Bologna - Unibo o del prof Soci Anna.

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