Application & Financing Process

  1. The farmer/rancher seeking financing obtains application forms (Official Action Certificate and Loan Submission Voucher) from the NIFA website/office or from their lender.
  2. The farmer/rancher and their lender negotiate the terms of the agricultural loan.
  3. The application materials (including Loan Submission Voucher of lender, Official Action Certificate of Borrower, and a draft copy of the loan note and amortization schedule) are completed by the lender and borrower and submitted to NIFA, along with the borrower's $250 application fee. If the application is approved, NIFA will issue an Intent Resolution to issue bonds.
  4. NIFA must hold a public hearing on the issuance of bonds for the project (requiring a public notice published at least 14 days prior).
  5. When all terms of the bond are finalized, the farmer(s) or rancher(s) may request final approval from NIFA, and preparation of final bond closing documents for execution. (Elected Official's Approval must be obtained by NIFA from the Nebraska Secretary of State prior to loan closing and bond issuance.)
  6. All parties may then execute the documents, close the bond issue, and fund the underlying loan. Generally, NIFA mails these documents to the loan closing site prior to the closing date.
  7. All payments on the NIFA loan are made directly to the local originating lender.

Fees

The $250 application fee is non-refundable but will be applied to the total fees due to NIFA at closing. The farmer or rancher must pay the following fees at the time of closing, which may be paid from (included in) the loan proceeds (in an amount up to 2% of the principal amount of the loan before fees), if permitted by the purchaser of the bond (the lender):

NIFA Fee - - 1 1/4% of the principal loan amount ($250 minimum)

Bond/NIFA Counsel Fee - -
Loan Amount              Fee
Up to $29,999              $475
$30,000 to $99,999      $675
$100,000 and higher    .6 of 1% of principal loan amount ($675 minimum)

Allocation Fee - - $150 

For example, the fees on a $150,000 [base] loan would be $2,925: ((150,000 x .0125) + (150,000 x .006) + 150). All or a portion are includable in the loan since $2,925 is less than 2% of $150,000, if including all the fees, the total loan amount would be $152,925 ($150,000 + $2,925).

The total fees charged on a loan shall not exceed a maximum limit of $4,775*  (*loans of $250,000 and higher).