The North Dakota Industrial Commission approved a loan recovery program for ethanol producers Thursday.
Agriculture Commissioner Doug Goehring estimates the coronavirus has had anywhere between a $600-million and $800-million impact on the industry.
The program, through the Bank of North Dakota, is similar to their small employer and CPR loans. The request was made by the North Dakota Ethanol Producers Association.
According to BND President and CEO Eric Hardmeyer, our state’s ethanol plants support more than 10,000 jobs. Right now, the industry estimates demand for gas, and subsequently, ethanol has been cut by 50 percent.
“I believe this will provide kind of the lifeline they need to get to the other side of this,” added Kirby Evanger, BND Chief Credit Officer.
The program will provide loans of up to $15-million for big-scale producers, which BND says will last about 18 months for the average company.