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

2. Financing a value-added processing business Member investment Cash BND Programs Ag PACE Loan Envest Loan NDDF and/or Regional Councils Subordinated debt SBA 504 Program NDDF and/or Regional Councils Business Equity 40% Bank debt Lead Bank and BND partner BND Programs Ag PACE Loan BioFuels PACE Loan USDA Loan Guarantee Debt financing 60% 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 701.328.5790markweide@nd.gov Loan Officers Annette Curl, northeast ND acurl@nd.gov 701.328.5786acurl@nd.gov Jim Leier, southwest ND jleier@nd.gov 701.328.5802jleier@nd.gov Bruce Schumacher, southeast ND bxschumacher@nd.gov 701.328.5668bxschumacher@nd.gov Rod Thorson, northwest ND rdthorson@nd.gov 701.328.5635rdthorson@nd.gov