Tile Drainage Loans
The Tile Drainage Act allows municipalities to “sell” debentures to the Province for funding private tile drainage projects. The term of the loan is 10 years and the repayment is due biannually.
The interest rate is at 6% for the 10-year term of the loan. Interest is compounded annually, and the loan can be repaid at any time without penalty. Annual repayment of your tile drainage loan comprising principal and interest will be levied and collected on your final tax billing each year for a period of 10 years.
To qualify for a tile drainage loan:
- You must be an active farmer.
- Amount of loan request cannot exceed 75% of the total cost of the project, up to a maximum of $50,000. in one year.
- All work must be carried out in accordance with the Agricultural Tile Drainage Installation Act.
- Tile Drainage Loan Applications shall be submitted to the Clerk at the administration office at 5151 County Road 15, St-Eugene for Council’s approval.
Should the applicant be granted a loan, the Drainage Superintendent must report to Council that the work has been satisfactorily completed before any funds are advanced by way of loan.
It is imperative that you advise the Drainage Superintendent as soon as the tile drainage contractor starts the work.
