The authority may loan funds to a borrower under the Irrigation
Loan Program if the borrower's agricultural operations include production of
Alabama fruits, vegetables, or nuts, and the borrowed funds will be used to aid
with the cost of irrigating those crops.
(a) Applicants are subject to a $50 loan
application fee for each application submitted.
(b) All borrowers seeking loans under this
rule are subject to credit checks by the authority.
(c) Irrigation systems proposed to be
installed with the funds borrowed pursuant to this rule must meet certain
criteria as determined by the authority and all building or construction plans
must be approved by an authority representative prior to award of a loan under
(d) The amount of a loan
made under this rule is an amount negotiated and mutually agreed to by the
authority and a borrower.
inspection of applicant's agricultural operation by an authority representative
is required prior to loan approval.
(f) All amounts borrowed under this rule
shall be repaid to the authority, plus interest at the applicable rate, no
later than 4 years from the date loan proceeds are issued to the
(g) Interest charged on
funds borrowed under this rule is 3.5%.
(h) All borrowed amounts must be fully
(i) All loans
issued pursuant to this rule require personal guaranty by an individual with
sufficient assets to fully satisfy the borrowed amount in the event of
(j) The authority reserves
the right to deny any loan application.