Solar & Battery Regulation & Incentive Programs

Agricultural Improvement Loan Program

Program Overview


Category:
Financial Incentive
Program Type:
Loan Program
Implementing Sector:
State
State:
Minnesota
Eligible Storage Technologies:
Wind (All), Biomass, Wind (Small), Anaerobic Digestion
Website:
http://www.mda.state.mn.us/en/grants/loans/improvement.aspx
Maximum Loan:
RFA provides up to 45% of loan up to $400,000
Loan Term:
Maximum term of 10 years
Administrator:
Rural Finance Authority
Applicable Sectors:
Agricultural
Last Updated:
07/28/2020

Eligibility Criteria

EligibilitySectorsTechnologies
max $400.0000
Agricultural
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.


Authorities

NameEnacted DateEffective DateExpired Date
Minn. Stat. § 41B.04301/01/1995