Last Updated July 28, 2020
Program Overview
Category:
Financial Incentive
State:
Minnesota
Incentive Type:
Loan Program
Administrator:
Rural Finance Authority
Start Date:
N/A
Expiration Date:
N/A
Applicable Sectors:
Agricultural
Eligible Renewable/Other Technologies:
Wind (All), Biomass, Wind (Small), Anaerobic Digestion
Summary
The Agricultural Improvement Loan Program is administered by the Minnesota Department of Agriculture through the Minnesota Rural Finance Authority (RFA) and provides loans to farmers for improvements or additions to permanent agricultural facilities. In 1995, wind-energy systems with a maximum capacity of 1 megawatt (MW) became eligible for the program.
Like Minnesota's Stock Loan Program, this is a "participation loan," where loans are made by individual financial institutions working with the RFA. The RFA has a Master Participation Agreement with over 400 financial institutions throughout the state; this agreement governs the responsibilities of the various parties in such participation loans. RFA participation is limited to 45% of the principal amount of the loan or to a maximum of $400,000. Terms for the remainder of the loan are negotiated between the participant and the lender.
The borrower must be a Minnesota resident, a Minnesota domestic family-farm corporation or a family-farm partnership. The borrower (or one of the borrowers) must be the principal operator of the farm. The borrower may not have a total net worth exceeding $851,000 (indexed for inflation). Applicants are required to pay a non-refundable $50 application processing fee.