Well / Septic Loans

Agricultural Best Management Practices (AgBMP) is a water quality program that provides low interest loans to property owners. The program's purpose is to improve water quality. Funding is only allocated to approved projects that fix water quality issues. 

The AgBMP loan program provides financing on qualified projects to property owners and is paid back through a special assessment on property taxes.  These low interest loans make it more affordable to implement practices to correct water quality problems.  

The AgBMP Loan Program is funded by the Minnesota State Legislature, the Minnesota Public Facilities Authority, and the U.S. Environmental Protection Agency and is administered through the Minnesota Department of Agriculture. 

Loans to Fix Water Quality Issues:

Connection to City Sewer/Water                                             Septic Systems
Private Wells 

Eligibility for Program:

Property owner must be current on their mortgage payments and property taxes; they must own the property where the repair/ replacement will be installed. Reverse mortgages do not qualify for the loan program.

Application Process:

1. Property owner/Borrower submits application, fee, and required attachments including project estimate
2. Project eligibility for AgBMP program is determined
3. If approved, borrower completes lien agreement
4. Borrower completes project with licensed/certified installer or contractor
5. Borrower provides final project receipts to County            
6. Borrower and County close the loan, payment paid directly to contractor           
7. Special assessment certified to property tax

Terms of Loan:

* Maximum loan length is 10 years based on project cost. 
* Interest rate 3% plus 1% loan origination fee
* $200 loan application fee (if project denied, fee refunded)
* Loan amount up to $100,000 per project (limit 2 projects)       * Borrower repays Anoka County via special assessment to property tax

Eligible Projects (if loan approved):

Septic Systems-must solve existing / potential groundwater pollution problem     
* Mound Septic Systems                                 
* Septic Repair/Replacement
* Cluster Systems
* Connection to city sewer

Private Wells-must solve existing / potential       groundwater pollution problem
* To meet set back requirements
* Repair broken casings
* Contaminated wells
* Abandon/sealing open well                                                      

Not Eligible Projects:                           

* Projects already started / completed  
* Projects having court filings against them
* New construction or remodeling that makes the current system non-compliant (i.e. bedroom addition)

Contact Information

Barb McKusick
Community Development Coordinator
Phone: 763-324-4605
Fax: 763-324-4610

AgBMP Program Resources
 Program Guidelines