Ag Commodity Export Enhancement Program

A Bank of North Dakota program, offered in partnership with the Export-Import Bank of the United States, that provides export credit insurance and financing for North Dakota bulk and processed agricultural export sales.

The applicant must be a North Dakota ag commodity exporter. Allowed activities are "the export of bulk ag commodities and food-grade, value-added ag products."

Eligibility does not rest on the exporter alone — the foreign buyer and their country are also screened: "Ex-Im Bank determines eligibility based on financial strength of the foreign buyer and financial and political stability of the country where the buyer is located."

BND separately determines whether the individual export transaction qualifies before referring it to Ex-Im Bank; either party can close the request at its review stage.

Insurance coverage of "not less than 90 percent" on bulk commodity sales as well as processed ag product transactions. The program "insures either the ag commodity exporter or BND against the non-payment risks of the foreign buyer, depending upon needs."

• Minimum transaction: $200,000.

• Term: the credit facility runs a maximum of one year. The underlying eligible receivables to be financed are limited to a maximum of 180 days.

• Interest rate: a floating rate based on a fixed spread over a variable rate index determined by BND's Investment Committee.

• Collateral: the Ex-Im insurance policy.

• Fees (all borrower-paid): a facility fee for the administrative costs of quoting the loan, gathering information and making a preliminary qualification determination; trade broker fees, since "because of the complex nature of these transactions, BND will engage an experienced trade broker throughout the process"; and a policy premium to Ex-Im Bank, which is "contingent upon the loan closing and may be eligible to be financed as part of the loan."

Apply through your local North Dakota lender, not directly to BND. "BND offers this loan by partnering with local lenders. To apply, contact your lender." The ND lender then contacts BND and advises whether it wishes to participate in the loan or prefers BND to proceed without participation.

BND's published process:

1. Ag commodity exporter contacts primary lender.

2. Primary lender contacts Bank of North Dakota; may choose to participate.

3. BND gathers information from the lender or exporter.

4. BND determines if the export transaction qualifies — if not, the request is closed.

5. BND contacts Ex-Im Bank.

6. Ex-Im Bank reviews and determines if qualified — if not, the request is closed.

7. BND writes the request for approval by its Investment Committee and Ex-Im Bank.

8. Transaction terms set; loan documents signed.

9. Exporter completes the transaction.

10. Payment made by BND with Ex-Im insurance.

11. Transaction settled; BND paid.

Questions: (701) 328-5795 or bnd@nd.gov.

• Ag Commodity Export Enhancement Program Process (PDF): https://bnd.nd.gov/pdf/ag_commodity_export_enhancement_program\_process.pdf

• BND Export Enhancement Program (non-ag companion program): https://bnd.nd.gov/business/export-enhancement-program/

• BND contact page: https://bnd.nd.gov/about-bnd/contact/