Local lenders participating with the AgBMP Loan Program are responsible for determining if a loan is financially feasible for the individual. Most commercial lending institutions, counties, regional development commissions, drainage authorities, and other local governments with taxing authority may sign up to be local lenders. The banker makes lending decisions, writes the loans, and collects payments from borrowers. Because the money is a loan and must be repaid, only those projects that are financially feasible and provide environmental benefits will be funded.
The borrower meets with their local county government contact to propose a project or purchase that can help maintain or improve water quality. If the borrower’s project or purchase meets state and county eligibility requirements the county may approve the project or purchase and let the borrower work with their local AgBMP cooperating bank or county lender. The local bank or county lender evaluates the financial aspects of the project or purchase. Once the project or purchase is complete, the local bank or county lender requests the funding from the MDA and the loan is drawn up between the local bank or county lender and the borrower.
The AgBMP Loan Program allows local governments the flexibility needed to address specific local water quality concerns.
The Local Government helps the farmers, agriculture supply business and landowners identify problems and find solutions to water quality issues related to the agricultural industry or failing septic systems.
The Local Banker is responsible for assessing the economics of the proposed project and determining if a loan is financially feasible for the individual. The banker makes lending decisions, administers the loans, and collects payments from the borrowers. Because the money is a loan and must be repaid to the AgBMP loan program, only those projects that are financially feasible and provide environmental benefits will be funded. The lender is responsible that all funding is repaid to he AgBMP loan program within the max 10 year term limit.
The AgBMP loan program is able to fund ANY ACTIVITY OR PRACTICE THAT HELPS TO IMPROVE WATER QUALITY, OR THAT HELPS MAINTAIN HIGH WATER QUALITY. The following shows a few examples for each category. There are more projects and practices available than listed under these categories.
AgBMP loans are meant to encourage water quality protection and may only be used to solve existing water quality problems.
Since 1995, a total of $76,294,195.17 million has been made available through the federal Clean Water Act and the Minnesota Legislature. Please contact your local Soil and Water Conservation District or County Environmental Office if you are interested in this program.
Local Government and Lender Contacts can be found by clicking on the local contact map shown below.
Call your local county offices to learn about specific local application procedures. (If your local bank is not on the list, you may ask them to contact us to become an AgBMP lender.)
Local Contact Map
AgBMP Loan Program
AgBMP.Loans@state.mn.us ~ 651-201-6618
Dwight Wilcox, Program Manager
Richard Gruenes, Program Administrator
Finance & Budget Division