Renewable Resource Loans to Private Entities
Loans for private water development projects are available from the department. Loans to individual private entities may not exceed the lesser of $400,000 or 80 percent of the fair market value of the security given for the project. Private loans to individuals must be secured with real property. Loans up to $3 million are available for such organizations as water user associations and ditch companies. These loans are scored by the revenue produced by the system. Irrigation system improvements — for example, the conversion from flood irrigation to sprinkler irrigation -- are the most common type of projects funded through private loans.
To finance loans, the law provided authority to issue general obligation renewable resource bonds up to a total outstanding balance of $20 million.
For Additional Information Contact:
Montana Department of Natural Resources and Conservation
Resource Development Bureau
1625 Eleventh Avenue
Helena, Montana 59620-1601