Guarantee Loan Programs for Farmers and Ranchers

Bank of North Dakota offers a Guarantee Loan program to Farmers and Ranchers called the Farm Real Estate Loan Guarantee Program. A loan guarantee is an agreement that in the event of default under the promissory note, the Bank shall pay to the lender the percentage as described below or otherwise agreed upon at the time of loan closing.

The Farm Real Estate Loan Guarantee Program assists farmers with the purchase or the restructuring of agricultural real estate loans by providing a financial institution with a 75% guarantee of total loans that do not exceed $400,000 to an individual borrower.