WTF are the banks doing?

Ok, so I own my own business, I am a farmer.  Farming is great sometimes and really sucks at times, but most things are that way.  I am a die hard believer in not keeping all your eggs in one basket, so I am trying to get 2 more business up a going.  One is a carpet cleaning business and the other is a pressure washing business.  I have all the equipment needed for the pressure washing business so I need no money to start this business.  The carpet cleaning business however is going to take about $50k to start up.  So I went to my bank that I use for my farming.  I had to talk to a different load officer than I usually do because this is considered "Commercial Lending".  This kid has less education than me and is way younger than me, and has way less experience than me.   So I present him with my request and here is the deal he shot me.  WARNING**** sit down and tape your head, it may explode.   I need $50K for my business, he tells me that if the equipment is worth 30K then he can lend me 80% of that.  Well that equals 24K so I still need 26K.  He wants me to put 26K into a CD at 1.5% interest as collateral against him loaning me 26K at 5.5%.???????WTF  I have the 26K plus some but YTF would I take this deal. Basically I would be paying 4% to use my own money.  I do a lot of business with this bank and have an excellent record with them.  I have land financed for less than 1/2 what it appraises for.  I also get my operating loan for my farm from them, which was not due to be paid back until March and I paid 2 weeks ago.   WTF