Government Guaranteed Loan Purchase Program
The Government Guaranteed Loan Purchase Program (FSA or Rural Development) at Bank of North Dakota provides interest rate assistance to borrowers that are experiencing cash flow difficulties.
FSA or Rural Development line of credit guarantees cannot be purchased. (Contract of Guarantee)
Application by a lead lender is required for BND’s participation. Application for additional documentation is required when submitting a request to BND. Lead lender is responsible for servicing the loan.
BND’s Interest Rate options on the guaranteed portion may be variable or fixed. Other rate options not listed will be considered if loan pricing meets BND goals and objectives. BND will establish the initial interest rate at the time of funding.
The interest rate on the originating lender s share of the loan may be variable or fixed regardless of BND s interest rate structure and must be in compliance with FSA or USDA Rural Development policy. The lead lender may add a servicing fee on the guaranteed portion purchased by BND.
The terms of the loan are contingent upon the agreement set between the Borrower and FSA or Rural Development.
The originating lender may charge the Borrower an origination fee as may be allowed by FSA or Rural Development. In addition, the originating lender may receive an annual servicing fee on the guaranteed portion purchased by BND.
An origination fee will be charged by BND.