Minnesota Incentives/Policies for Renewables & Efficiency |
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Last DSIRE Review: 10/09/2012
Program Overview:
| State: |
Minnesota |
| Incentive Type: |
State Loan Program |
| Eligible Renewable/Other Technologies: |
Biomass, Anaerobic Digestion |
| Applicable Sectors: |
Agricultural |
| Amount: | RFA participation limited to 45% of loan principal |
| Maximum Incentive: | RFA can provide up to $250,000 of loan principal |
| Terms: | 10 year maximum loan term, RFA portion at zero-interest |
| Funding Source: | Minnesota Rural Finance Authority (RFA) |
| Web Site: |
http://www.mda.state.mn.us/en/grants/loans/digester.aspx
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Authority 1:
Date Enacted:
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Minn. Stat. § 41B.049
1998
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Authority 2:
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Minn. Stat. § 41B.03
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Summary:
Established in 1998, the Minnesota Dept. of Agriculture Methane Digester Loan Program helps livestock producers install on-farm anaerobic digesters used for the production of electricity by providing zero-interest loans to eligible borrowers. The loan program is part of the Rural Finance Authority (RFA) revolving loan fund, through which farmers can receive financial aid for many different farming related activities and improvements. The general eligibility requirements for loans through the RFA are contained in Minn. Stat. § 41B.03, which permits loans only to Minnesota residents, domestic family-farm corporations, and family-farm partnerships. The methane digester loan program is specifically authorized by Minn. Stat. § 41B.049.
In order to be eligible for a Methane Digester Loan, a borrower must:
- locate the projects and utilize the equipment and practices on land located in Minnesota;
- provide evidence of financial stability;
- demonstrate an ability to repay the loan;
- provide evidence that the practices implemented and capital assets purchased will be
properly managed and maintained; and
- not have previously received a loan under this program
Within the Methane Digester Loan Program, the RFA may make a direct loan to the borrower or act as a participant in the loan with an eligible lender (more than 400 such approved lenders exist throughout the state). State participation is limited to 45% of the loan principal in the case of participation loans and may not exceed $250,000 for either participation or direct loans. The loan term is limited to a maximum of 10 years and repayment terms for the RFA's participation interest may differ from those of the outside lender. Loans can be used as a match for federal loans and grants, but may not be used to refinance a debt existing prior to the application. |
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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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