Minnesota Incentives/Policies for Renewables & Efficiency |
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Last DSIRE Review: 03/06/2013
Program Overview:
| State: |
Minnesota |
| Incentive Type: |
State Loan Program |
| Eligible Efficiency Technologies: |
Unspecified Technologies |
| Eligible Renewable/Other Technologies: |
Wind, Biomass, Solar-powered equipment; other on-farm energy production |
| Applicable Sectors: |
Agricultural, Farms Only |
| Amount: | Varies |
| Maximum Incentive: | $40,000 per farm family ($160,000 for joint projects) |
| Terms: | Fixed interest rate (currently 3%) for up to 7 years
2:1 collateral to loan ratio required |
| Funding Source: | Sustainable Agriculture Revolving Loan Fund |
| Program Budget: | $1,000,000 |
| Web Site: |
http://www.mda.state.mn.us/en/grants/loans/esaploan.aspx
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Authority 1:
Date Enacted:
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Minn. Stat. ยง 17.115
1988
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Summary:
The Minnesota Sustainable Agriculture Loan program will provide loans to Minnesota residents actively engaged in farming for capital expenditures which enhance the environmental and economic viability of a farm. Loan proceeds may be used for a variety of purposes including projects related to on-farm energy production, energy use reductions or efficiency improvements, and solar powered equipment. Projects must result in both environmental improvement and improved profitability. Past loans have supported wind turbines, solar grain dryers and water pumps, small on-farm fuel production, and biomass burning furnaces, but most have been directed towards soil conservation.
Loans are available in amounts of up to $40,000 per farm family, with up to $160,000 ($40,000 per farmer) available for joint projects. The program currently offers a fixed interest rate of 3% over a term based on the expected life of the loan collateral, not to exceed 7 years. A 2:1 ratio of collateral to loan amount is required. The actual interest rate could change in the future, but is limited by statute to 6% or less. Repayment of the loan takes place on a semi-annual schedule.
Loan proceeds may not be used to cover operating expenses or to refinance existing debt obligations. The program accepts and reviews applications throughout the year. Please visit the program website or contact the Minnesota Department of Agriculture for additional information. |
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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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