Clean Water State Revolving Fund

Picture of a farm.

Nonpoint Source Animal Waste Disposal Systems

This is a nonpoint source loan program developed in cooperation with the Department of Natural Resources, the Department of Agriculture, and the Missouri Agriculture and Small Business Development Authority. The program is designed to provide low interest financing to small producers for design and construction of animal waste treatment facilities. The program will finance 100 percent of the eligible costs.

Questions about State Revolving Fund financing of Nonpoint Source Animal Waste Disposal Systems

Q. Who is eligible for an agriculture non-point source loan?
Q. How does the non-point source loan program work?
Q. What is the cost to participate in the non-point source program?
Q. What is the interest rate on the loan?
Q. Can the eligibility requirements change?

Q. Who is eligible for an agriculture nonpoint source loan?

A. Producers who are constructing animal waste treatment facilities and who do not have an NPDES permit and are not considered Concentrated Animal Feeding Operations (CAFO) in accordance with state statute and regulation 10 CSR 20-6.300 may be eligible.

Under current U.S. Environmental Protection Agency definitions, loans cannot be made to producers whose poultry or livestock operation are considered to be CAFOs. SRF monies may not be used to provide funding that solely enables the growth of an AFO to a CAFO.

Q. How does the nonpoint source loan program work?

A. The applicant must first obtain a letter of approval for construction from the department. Eligibility for a loan will be considered by the department at that time. The applicant then acquires interim financing from the financial institution of his choice. Once the construction is completed in accord with the letter of approval, the department, in cooperation with the Missouri Agriculture and Small Business Development Authority, provides the permanent financing for the project.

Q. What is the cost to participate in the nonpoint source program?

A. The authority charges a nonrefundable $50 application fee. A loan participation fee equal to one percent of the amount of the loan, with a minimum of $250, must be paid at closing. In addition, there may be costs charged by the bank providing the interim financing.

Q. What is the interest rate on the loan?

A. The interest rate on current loans is 5.6 percent. It is projected that the interest rate will be 5.6 percent or lower for loans made this fiscal year.

Q. Can the eligibility requirements change?

A. In December 2002, the U.S. Environmental Protection Agency released the final revised rule. EPA did not reduce the size limits except for minor modifications.

To receive additional information on the financing of animal waste facilities and other nonpoint source activities, contact the department's Financial Assistance Center.