Business owners in Cook County faced with environmental clean-up issues take note – some help is available to you if you meet certain standards.
Environmental projects can have a significant financial impact on small businesses but Minnesota Pollution Control Agency (MPCA) has a loan program available that can help meet that financial burden.
The Small Business Environmental Loan Program provides low-interest loans to small businesses for capital equipment purchases that meet or exceed environmental regulations, and costs associated with the investigation and cleanup of contaminated sites.
Even if projects save money long term, securing affordable funding now can be a barrier to making environmental changes.
Common benefits include a healthier workplace, lower waste disposal bills, and reduced regulatory obligations. Projects that go beyond compliance may result in simpler permits and/or cost savings.
Eligibility and conditions
Many business types are eligible, but there are restrictions on business size. A borrower must: Be an existing small business corporation, sole proprietorship, partnership, or association. Have less than 50 full-time employees; have an after-tax profit of less than $500,000; have a net worth of less than $1 million and also demonstrate the ability to repay the loan.
General conditions:
Loans are generally given in an amount between $1,000 and $50,000 with an interest rate of 4 percent or one-half the prime rate, whichever is greater at the time the loan is awarded. Repayment terms are up to seven years with flexibility in the types of collateral accepted. Loans are awarded throughout the year.
Application and evaluation
Applications are evaluated based on the applicant’s ability to secure and repay the loan, and the project’s expected environmental benefits. All project costs must be pre-approved and cannot be incurred until the application process is complete. Borrowers must report on the project’s realized environmental and economic benefits.
A screening committee composed of financial and environmental professionals evaluates each application. Priority projects will be given special consideration. Program priority areas include breweries, gas stations, printers, water use reduction projects, and projects that reduce regulatory obligations.
Contact us
For more information, or to request an application, contact the MPCA’s Small Business Environmental Assistance Program: Eric David, Minnesota Pollution Control Agency, 520 Lafayette Road N., St. Paul, MN 55155. Or call 651-757-2218 or 800-657-3938 or email eric.david@state.mn.us
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