The MPCA provides loans at zero-percent interest to small businesses for capital equipment purchases that help the company meet or exceed environmental regulations, and covering costs associated with the investigation and cleanup of contaminated sites.
Eligibility
Applicants. To be eligible for this loan, the applicant must
- be small business corporation, sole proprietorship, partnership, or association
- be a potential emitter of pollutants to the air, ground, or water.
- need capital for equipment purchases that will meet or exceed environmental regulations or need capital for site investigation and cleanup
- have less than 100 full-time equivalent employees
- have an after-tax profit of less than $500,000
Projects. The loan covers capital equipment purchases that meet or exceed environmental regulations, as well as the costs of investigation and cleanup of contaminated sites; this includes:
- the purchase and installation cost of equipment
- installation of pollution prevention and control equipment
- projects focused on reducing onsite emissions
Examples of eligible projects; this list is not complete.
Refrigeration:
- replacing or retrofitting existing equipment to use a refrigerant with lower global warming potential (GWP)
- remote condensing units, supermarket rack systems, and associated merchandising cases and walk-ins
- ducted air conditioning systems with 25 lbs. or more refrigerant
- variable refrigerant flow air conditioning system with 25 lbs. or more refrigerant
- installing refrigerant leak detection equipment
- upgrading winter maintenance equipment, such as brine-making equipment, sprayers, or snowblowers
Auxiliary power:
- installing electric vehicle (EV) charging stations for fleet use
- switching to battery-powered commercial landscaping equipment
Pollution reduction:
- installing water-based paint booths at auto body shops
- upgrading to more environmentally friendly drycleaning equipment
- replacing older non-road engines to minimize emission or fuel consumption
Available funds
Loan terms and conditions:
- loan amount from $1,000 to $75,000
- zero percent interest rate
- repayment term up to seven years
- flexibility in the types of collateral accepted
- awarded throughout the year
How to apply
The Small Business Environmental Improvement Loan program accepts applications on a continuous basis. E-mail completed applications to smallbizfunding.pca@state.mn.us.
Specific documents and information to include:
- financial documents – balance sheet, income statement, last three years of tax returns
- vendor quote(s) – for proposed equipment/services dated within the past 90 days
- economic benefits – this includes details on:
- direct cost savings
- how the loan will reduce your operating costs
- any reduced permit or regulatory obligations
- environmental benefits – clearly demonstrate how the project will reduce waste, emissions, or material use. For projects involving replacing old equipment with new, applicants will need to provide calculations. These calculations should clearly demonstrate:
- the difference in emissions between the existing equipment and the proposed new equipment
- the type and amount of pollutant(s) that will be reduced
Frequently asked questions
Q1: Are there any reporting requirements after receiving the loan?
A1: Loan recipients undertaking Chloride Reduction projects will need to report on their progress and results each season. This report helps us track the project's progress and allows us to create success stories to share with others interested in reducing their salt use.
All loan recipients will receive a project evaluation form, from MPCA, 12 months after the project is complete. This form will gather information about the actual environmental and economic benefits the project achieved.
Q2: What are some examples of ineligible projects?
A2: We typically do not fund the following:
- starting a consulting business
- purchasing a new vehicle
- lighting upgrades, replacing furnaces and boilers
- paying off an existing loan
Q3: What is the application review process and timeline?
A3: Applications are accepted and reviewed on a continuous basis to ensure they are complete and accurate. After the initial review, applications are sent to an evaluation committee made up of environmental professionals. We aim to provide a response to each applicant within 45 days of submission.
Q4: How do I get the loan funds after I’m approved?
A4: Once the loan is approved, the loan funds are sent directly to the vendor.
Q5: Can I make a purchase before my loan application is approved?
A5: No. Prior purchases are not eligible for a loan.
More information
In addition to funding, the Small Business Environmental Assistance program helps small business comply with environmental rules, reduce wastes and emissions, and reduce regulatory obligations.