Value-Added Stock Loan Participation Program (Minnesota)

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Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place Minnesota

Name Value-Added Stock Loan Participation Program
Incentive Type State Loan Program
Applicable Sector Agricultural
Eligible Technologies Photovoltaics, Wind, Biomass, Anaerobic Digestion
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs








Start Date 1994


Funding Source Rural Finance Authority Revolving Loan Account




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

Program Administrator Rural Finance Authority
Website http://www.mda.state.mn.us/en/grants/loans/stockloan.aspx
Date added to DSIRE 2000-01-01
Last DSIRE Review 2014-10-08



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


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 $437,000 (as of July 2013, indexed for inflation), including the assets and liabilities of the applicant's spouse and dependents.


Incentive Contact

Contact Name Gary Blahosky
Department Minnesota Department of Agriculture
Division Agricultural Development & Financial Assistance Division
Address 625 Robert Street North

Place St. Paul, Minnesota
Zip/Postal Code 55155-2538
Phone (651) 201-6666


Email Gary.Blahosky@state.mn.us
Website http://www.mda.state.mn.us/en/about/divisions/agdev/agfinance.aspx
Contact Name Ryan Roles
Department Minnesota Department of Agriculture
Division Finance and Budget Division
Address 625 Robert Street North

Place St. Paul, Minnesota
Zip/Postal Code 55155-2538
Phone (651) 201-6666
Phone 2 (651) 201-6004

Email ryan.roles@state.mn.us
Website http://www.mda.state.mn.us/
     

Authorities (Please contact the if there are any file problems.)

Authority 1: Minn. Stat. § 41B.046

Date Enacted 05/11/1994 (subsequently amended)


Authority 2: Minn. R. 1656.0011 et seq.
Date Effective 10/26/2005 (most recent revision)



Authority 3: Minn. Stat. § 500.24



















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"