Carlton County Soil and Water Conservation  District                             

       The mission -To assist land occupiers in protecting and enhancing the natural resources of Carlton County     

                                                           

      115 5th Street South P.O. Box 29 Carlton, MN 55718 Phone: (218) 384-3891 Email: contact@carltonswcd.org Website: www.carltonswcd.org       

The AG BMP Loan Program

Provides low interest loans to credit-worthy rural landowners farmers and agriculture supply businesses to encourage projects that protect lakes, streams, and groundwater. Loans are used to reduce existing water quality systems, eroding soil, abandoned wells, feedlots, or other pollution hazards.

*Can be combined with government cost share or grants.

WHO MAY APPLY FOR LOANS?                                           

bulletRural landowners
bulletFarmers
bulletAgriculture Supply Businesses

WHAT ARE ELIGIBLE ACTIVITIES?

bulletRepair of individual septic systems
bulletErosion control projects along lake shores, streams, in cropland and forest land
bulletSealing of abandoned wells
bulletFeedlot or manure storage improvements
bulletManure handling, spreading, or incorporation equipment improvements
bulletOther equipment or facilities to protect water quality from chemical spills, misapplication, or other pollution hazards.
bulletWindbreaks to prevent soil erosion

WHAT ARE INELIGIBLE ACTIVITIES?

bulletProjects already started
bulletPortions of projects dealing with expansion as the loans are for existing problems
bulletImprovements for feedlot operations with more than 1000 animal units
bulletActivities for operations that have had criminal procedures/legal action brought against them.

HOW TO APPLY?

The program is locally administered by the Carlton County Soil and Water Conservation District. Applicants must send a letter of request to the District describing the water quality problem, how the loan would be used, and if available, a cost estimate of the project.

Send letter to: Carlton County SWCD, 115 5th Street South, P.O. Box 29, Carlton, MN 55718

WHAT IS THE APPROVAL PROCESS?

District Board reviews the applications to determine if projects meet state eligibility requirements.

Projects that do meet the requirements are sent on the local lender for approval process. The local lender (bank), decides if the applicant meets their lending guidelines for the loan. Projects must meet all federal, state, and local codes as well as Soil and Water Conservation District standards. The lender then approves the loan if the applicant meets the lending guidelines.

COMPARISON OF TYPICAL INTEREST PAID ON 3% AND 9% LOANS FOR 2 TO 10 YEARS

YEARS

 LOAN AMOUNT TOTAL INTEREST PAID AT 3% TOTAL INTEREST PAID AT 9% COST SAVINGS
2 $5,000 $226 $685 $459
5 $5,000 $459 $1,427 $968
10 $30,000 $5,169 $16,746 $11,577
10 $50,000 $8,615 $27,910 $19,295

TERMS OF LOANS:

Loan amounts are limited to $50,000 to any one individual or project.  "Community" septic systems serving two or more people may receive up to $100,000.

Loans may be amortized over a period of up to 10 years except for conservation tillage practices and individual sewage treatment system projects which may be amortized over 5 years.

The maximum interest rate is 3% plus a one time 1/2% origination fee and other normal and customary charges.

The District and local lender may set additional terms and requirements for eligibility of projects.

These loans may only be used for existing water quality problems.

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