Minnesota Incentives/Policies for Renewables & Efficiency |
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Last DSIRE Review: 07/12/2012
Program Overview:
| State: |
Minnesota |
| Incentive Type: |
State Loan Program |
| Eligible Renewable/Other Technologies: |
Photovoltaics, Wind, Biomass, Anaerobic Digestion |
| Applicable Sectors: |
Agricultural |
| Maximum Incentive: | RFA provides up to 45% of the loan up to $40,000 of loan principal |
| Terms: | Maximum term of eight years
RFA portion at lesser of 4% or half of lender's effective rate for the non-RFA portion
Interest-only loan payments permitted for 2 years |
| Funding Source: | Rural Finance Authority Revolving Loan Account |
| Start Date: | 1994 |
| Web Site: |
http://www.mda.state.mn.us/en/grants/loans/stockloan.aspx
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Authority 1:
Date Enacted:
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Minn. Stat. § 41B.046
05/11/1994 (subsequently amended)
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Authority 2:
Date Effective:
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Minn. R. 1656.0011 et seq.
10/26/2005 (most recent revision)
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Authority 3:
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Minn. Stat. § 500.24
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Summary:
The Value-Added Stock Loan Participation Program was created in 1994 and is designed to help farmers finance the purchase of stock in certain types of cooperative, limited liability company, or limited liability partnership that will produce a "value-added agricultural product." This may include wind energy and anaerobic-digestion cooperatives if they meet the eligibility requirements (see Statute and Rules for details).
Like Minnesota's Agricultural Improvement Loan Program, this is a "participation loan" program, where loans are made by individual financial institutions working with the Rural Finance Authority (RFA). The RFA purchases up to 45% of the loan principal up to $40,000. The participant negotiates an interest rate, which may be a variable or fixed rate, for the non-RFA portion of the loan with a lender. The interest rate offered by the RFA is then set at a fixed rate of the lesser of 4.0% or half the lender's effective rate at closing. Loans are for a maximum of 8 years, and interest-only payments are permitted for the first 2 years. Interest and loan principal repayments are deposited back into a revolving loan account. The RFA is not permitted to make stock loans cumulatively totaling more than $2 million for the financing of stock purchases in any one cooperative.
The program will not finance more than 95% of the price of the stock purchased by the participant. To qualify, an applicant may not have a total net worth exceeding $428,000 (as of July 2012, indexed for inflation), including the assets and liabilities of the applicant's spouse and dependents. |
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.
While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.
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