Loans
Agriculture Loans
Our bankers know agricultural business. First National Bank offers a variety of Ag loan products that can help you reach your goals: to expand your operation or just maximize cash flow.
As a community bank, with ties to farm production, we know the challenges and unique needs of an agricultural business operation. Call us to discuss the ways we can help you meet your immediate needs and long-term plans.
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Ag Operating Loans and Lines of Credit
Operating loans and lines of credit offer the flexibility you need to operate your business. These loans are ideal for:
- Crop & Livestock Inputs
- Other operating expenses & working capital needs
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Equipment Loans
Equipment upgrades and additions are a part of moving your business forward. When the time comes, look to an equipment loan from First National Bank. Our loans can help you buy the equipment your business needs, without depleting cash reserves and feature:
- Flexible term lengths to spread the cost of purchasing new equipment over several years
- Customized repayment plans
- Lease options
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Livestock Loans
Whether purchasing feeder livestock or breeding livestock, we offer flexible term lengths and customized repayment plans for your livestock purchase.
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Farm and Ranch Real Estate Loans
Long term, fixed or variable rate financing for the purchase or refinance of farm land as well as building and storage facilities.
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FSA Guaranteed Loans
We are proud to offer Farm Service Agency (FSA) guaranteed loans for family-size farms and ranches. Working with the FSA, First National Bank can help you obtain a loan to purchase:
- Land
- Livestock
- Equipment
- Feed
- Seed
- Supplies
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USDA Business & Industry Loans
What does this program do?
- This program offers loan guarantees to rural businesses.
- Rural areas outside of a city or town with a population of fewer than 50,000 people.
- The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area.
- The lender may be located anywhere in the United States.
- Projects may be funded in rural and urban areas under the Local and Regional Food System Initiative. Check eligible addresses for Business Programs.
- Eligible uses include (but are not limited to):
- Business conversion, enlargement, repair, modernization or development.
- The purchase and development of land, easements, rights-of-way, buildings or facilities.
- The purchase of equipment, leasehold improvements, machinery, supplies or inventory.
- Debt refinancing when refinancing improves cash flow and creates jobs.
- Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.
- Collateral must have documented value sufficient to protect the interest of the lender and the Agency. The discounted collateral value must be at least equal to the loan amount. Lenders will discount collateral consistent with sound loan-to-value policy. Hazard insurance is required on collateral (equal to the loan amount or depreciated replacement value, whichever is less).
- Real Estate: 80 percent of fair market value.
- Equipment: 70 percent of fair market value.
- Inventory: 60 percent of book value (raw inventory and finished goods only).
- Accounts Receivable: 60 percent of book value (less than 90 days).
- 80 percent for loans up to $5 million.
- 70 percent for loans between $5 and $10 million.
- 60 percent for loans exceeding $10 million, up to $25 million maximum.
- Maximum term on real estate is 30 years.
- Maximum term on machinery and equipment is for its useful life or 15 years, whichever is less.
- Maximum term on working capital is not to exceed 7 years. Loans must be fully amortized; balloon payments are not permitted.
- Interest-only payments may be scheduled in the first 3 years.
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Other Loans
First National Bank works with local and state programs including AgBMP and the Minnesota Rural Finance Authority Loan Programs.
