as introduced - 91st Legislature (2019 - 2020) Posted on 03/11/2020 03:00pm
A bill for an act
relating to agriculture; doubling the maximum loan amount under the pilot
agricultural microloan program; amending Minnesota Statutes 2018, section
41B.056, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2018, section 41B.056, subdivision 4, is amended to read:
(a) The authority may disburse loans through an intermediary to farmers
who are eligible under subdivision 3. The total accumulative loan principal must not exceed
deleted text begin $10,000deleted text endnew text beginnew text end per loan.
(b) Refinancing an existing debt is not an eligible purpose.
(c) The loan may be disbursed over a period not to exceed six years.
(d) A borrower may receive loans, depending on the availability of funds, up to 70
percent of the estimated value of the crop or livestock.
(e) Security for the loan must be a personal note executed by the borrower and any other
security required by the intermediary or the authority.
(f) The authority may prescribe forms and establish an application process for applicants
to apply for a loan.
(g) The interest payable on loans for the pilot agricultural microloan program must be
at a rate determined by the authority.
(h) Loans under this program will be made using money in the revolving loan account
established under section 41B.06.
(i) Repayments of financial assistance under this section, including principal and interest,
must be deposited into the revolving loan account established under section 41B.06.