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25:20 <br />Minn. Stat. § 446A.081, subd. 9. <br />Minn. Stat. § 446A.081, subd.8. <br />Minn. Stat. § 446A.087. <br />USDA Rural Development, Program <br />Fact Sheets. <br />Minnesota Rural Water Financing <br />Authority. <br />Minnesota Governmental Agency <br />Finance Group. <br />Micro Loan Financing Program. <br />CHAPTER 25 <br />• Small Community Wastewater Treatment Program, providing loans <br />and grants to assist local governments with costs to replace non- <br />complying Subsurface Sewage Treatment Systems (SSTS) (commonly <br />known as septic systems) with new subsurface sewage treatment <br />systems, or publicly owned and operated small cluster sewage <br />treatment systems. If a governmental unit receives preliminary <br />approval by the Pollution Control Agency of its feasibility report the <br />state may make a partial construction award for eligible design costs. <br />• Drinking Water Revolving Fund, providing below - market financing <br />and in some situations, loan forgiveness, to local governments and <br />other public water suppliers to upgrade and construct drinking water <br />treatment, distribution, and storage facilities. The Minnesota <br />Department of Health (MDH) also administers this program based on <br />criteria in state law. <br />• Credit Enhancement Program, providing a limited state guarantee for <br />certain types of general obligation bonds issued by cities for purposes <br />specified in state law. <br />A. USDA rural development <br />As it relates to local infrastructure, USDA Rural Development provides <br />funding to rural communities for clean water, hospitals, clinics, community <br />centers, day -care facilities, first responder needs and other essential <br />community infrastructure. Rural development prioritizes public entities, in <br />areas with less than 5,500 people, to restore a deteriorating water supply, or <br />to improve, enlarge, or modify a water facility or an inadequate waste <br />disposal facility. Small facilities and those serving low- income <br />communities receive preference. <br />1. Financing tools for water - related projects <br />Cities often encounter timing issues when working with federal grants or <br />financing water- related projects. The money may not be available when the <br />city needs to start water, sewer, and wastewater projects Minnesota Rural <br />Water in conjunction with others, offers a number of financing tools to help <br />cities fund water, sewer, and wastewater projects: <br />• The Minnesota Rural Water Finance Authority (MRWFA) is an interim <br />construction loan program providing funding at a very low cost of <br />borrowing for communities receiving a permanent loan commitment <br />from the U. S. Department of Agriculture, Rural Development (RD). <br />• The Minnesota Governmental Agency Finance Group (MGAFG), in <br />conjunction with Morgan Keegan, offers a "Flexible -Term Finance <br />Program" for a variety of projects with loan terms up to 25 years <br />helping communities obtain competitive financing for water, <br />wastewater, gas, streets, and community facilities projects. <br />• Minnesota Rural Water Association's Micro Loan Program provides <br />low -cost loans from $30,000 to $200,000, repayable in seven years, to <br />members for small projects. <br />This chapter last revised 12/1/2012 <br />LEAGUE OF MINNESOTA CITIES <br />