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

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 ( =2.25%) Biofuels PACE: $250K/project; 5% interest buydown PACE: $300K/project; 5% interest buydown

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

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

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

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

For more information Bob Humann, Senior Vice President Lending Services, Bank of North Dakota BND Ag Lending Staff Members Mark Weide, Manager Loan Officers Annette Curl, northeast ND Jim Leier, southwest ND Bruce Schumacher, southeast ND Rod Thorson, northwest ND