SEPTIC LOAN PROGRAM
Do you need to upgrade your failing septic system? Failing septic systems pose serious health risks to a family’s drinking water and to people downstream. In addition, a failing septic system is illegal Minnesota.

Don’t despair; help is available. Homeowners within the Seven Mile Creek Watershed can receive low interest loans—from the State Revolving Loan Fund, through Nicollet County—to upgrade their septic systems. This loan money is available for a limited time, on a first-come, first-served basis.

Eligibility Requirements
To be eligible for a low interest loan, the property must be residential and located within the Seven Mile Creek Watershed of Nicollet County and have an existing septic system that is failing. The applicant must be the property owner. No income requirements or restrictions are placed on the loans.

Terms of Loan
The amount of the loan is limited to not more than the total cost of designing and installing a septic system that conforms with state law, up to a $10,000 maximum. The applicant may request a loan for less than the total cost. The septic system upgrade permit fee and administrative fee may be included in the loan.

Interest Rate
An annual, simple interest rate of four percent will accrue beginning the date that Nicollet County pays the contractor. This fixed low interest rate may save the average rural homeowner thousands of dollars.

Term Length
Loans of up to $5,000 are to be repaid within five years. Loans of more than $5,000 are to be repaid within 10 years or less. Repayment will not be extended beyond the life of the State Revolving Loan Fund (June 15, 2015).

Fees
An administrative fee of $150 includes recording fees and the Septic Upgrade Permit fee of $40.

Loan Pre Approval
Loan pre-approval, by the Nicollet County Environmental Services Department, is required. To qualify for the loan, the following requirements must be confirmed:

• Tax payment is current. No delinquent taxes may be owed on the subject property.
• Property value: the total of the loan amount must not exceed the assessed estimated market value of the property as shown in the County Assessors records.
• The dwelling that the system serves must be located within the Seven Mile Creek Watershed or have septic system tile contributing to the watershed.
• Pre-approval must be accompanied by a signed contractor’s estimate, and an approved site evaluation and design must accompany the estimate.

Installation Requirement
Installation requirements include the following:

• Site evaluation, design, and installation of septic systems must be performed by a state licensed contractor of the owner’s choice, with the license applicable to the type of work being performed.
• A County septic permit, review, and approval of the septic system design are required prior to any installation activities. No loans will be approved for any work on a system that has been done prior to loan approval.
• Final site inspections by a County Inspector are required.

Final Loan Approval
The final loan approval must be accompanied by a contractor’s bill or “as built” statement for the septic system, prepared in accordance with Minn. Rules Chapter 7080.

Repayment of Lien
The first payment is due with the first half of the property taxes due the first January after construction has been completed. Semi-annual payments are due with property tax payments thereafter. The loan may be paid in full at any time with no prepayment penalty. Full payment of lien must be made at the time of sale or transfer of the property.

Funding Source
State Septic SRF loan Program: $550,000 for Seven Mile Creek Watershed

Disbursement System

1. The contractor submits final bill and "as built" to Environmental Services Department (507-931-6800)
2. Nicollet County Environmental Services Department completes the “Completion of Activity Certification”.
3. Auditors Office sends notice to property owner a notice that states the following information:
   a. The amount to be specially assessed against the property
   b. The right of the property owner to repay against the property
   c. The public official to whom repayment must be made
   d. The time within which prepayment must be made
   e. The time within which prepayment must be made without assessment of interest
   f. The rate of interest to be accrued if the assessment is not prepaid within the required time period
   g. The period of the assessment

For More Information
Septic Loan Brochure for Seven Mile Creek Watershed (pdf 105 k)
Septic Loan Brochure for Little Cottonwood River Watershed (pdf 115 k)
Septic System Information - National Environmental Services Center
http://www.nesc.wvu.edu/nsfc_septicnews.htm

Principles and Design of On-Site Waste Disposal with Septic Systems - EPA
http://www.epa.gov/seahome/septics/src/main.htm