The North Dakota Industrial Commission approved the Ethanol Recovery Program, a loan guarantee and interest buydown program for the state’s ethanol industry.
This program is intended to assist local financial institutions in providing low interest loans to support North Dakota ethanol producers in their economic recovery due to negative impacts from the COVID-19 Pandemic, applications will be received through November 30, 2020.
Loan Terms
• At the discretion of the lead bank, principal and interest payments may be deferred for up to 6-months
or the borrower may make interest only payments for up to 6-months.
• After the deferral or interest only period, the remaining loan balance will term out as a CPR PACE loan
with up to a 7-year amortization with a 5-year Balloon.
• Upon conversion to term, loan will receive interest rate buydown to 1% for a maximum of 5-years
or until such time the buydown dollars are fully expended.
• Borrower means an individual, corporation, limited liability company, partnership or any combination
of these if there is common ownership.
• BND may take not less than 50 percent or more than 80 percent of the total loan amount as its
participation percentage.
A qualified business is a commercial facility producing ethanol and related products in North Dakota.
Loan funds maybe used to support working capital in the state and can not be used for capital purchases, business expansions or to refinance any existing debt or reloaction of the business within North Dakota.
The North Dakota Ethanol Producers Association has been working with the Bank of North Dakota over the past week to ensure the program will be effective to the states industry during this unprecedented time.
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