Combined Heat and Power Partnership
Value-Added Stock Loan Participation Program
| Date Last Updated | 11/16/2012 |
| Incentive Type | Loan |
| State/Federal | MN |
| Incentive Administrator/Contact Office | Minnesota Department of Agriculture |
| Incentive Initiation Date | 1/1/1994 |
| Incentive Size and Funding Source | The Value-Added Stock Loan Participation Program is designed to help farmers finance the purchase of stock in certain types of cooperatives, limited liability companies or limited liability partnerships that will produce a "value-added agricultural product." In this program 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. |
| Eligible Recipient | Eligible applicants must be the following:
|
| Eligible Fuel | Woody Biomass; Biogas; Other |
| Eligible Project Size (MW) | Does Not Specify |
| Minimum Efficiency Required (%) | Does Not Specify |
| Other Selected Eligibility Criteria | 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. |
| Application Form(s) | Application Form |
| Resource Website(s) |
