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Environmental assistance loans

Financial assistance to accelerate the application and/or improvement of environmental processes and technologies in Minnesota by providing assistance for the capital costs (machinery and equipment) of eligible projects.

MPCA partners with private financial institutions to offer loans resulting in substantially reduced interest rates for projects that will improve the environmental and economic quality of Minnesota.


Priority eligible projects: green chemistry, pollution prevention, source reduction, recycling, and source-separated compostable materials.

Eligible loan costs: limited to the capital costs of implementing waste or pollution prevention technologies in Minnesota — the costs of acquisition of machinery and equipment, including freight and installation, and related improvements.

Loan types: participatory and direct

  • Participatory loans provide for awards up to a maximum loan of $250,000 at zero percent interest (contingent upon available funding in the revolving account). Participatory loan funds must be matched by a minimum dollar-for-dollar match by loans from a participating financial institution. In addition to the competitive interest rate charged by the participating financial institution on its matching funds, an administrative fee may be added to the participatory loan to defray costs associated with the servicing of the EA Loan by the financial institution.
  • Direct loans are limited to businesses/entities and provide for awards up to a maximum loan of $50,000 at four percent interest or half the prime rate, whichever is greater. Direct loans must be matched by a minimum one dollar from the applicant for every two dollars received. Start-up businesses are not eligible for direct loans.

Available funds

The model is based on a revolving funding mode, where additional funding is made available as past recipients repay their loans.