Environmental assistance loans provide 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.
The MPCA partners with private financial institutions to offer participatory loans resulting in substantially reduced interest rates for projects that will improve the environmental and economic quality of Minnesota. The MPCA also offers direct, zero-interest loans for smaller projects.
Eligibility
Priority eligible projects: green chemistry, pollution prevention, source reduction, recycling, and organics recycling.
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 $600,000 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 provide for awards up to a maximum loan of $100,000 at zero percent interest. Direct loans must be matched by a minimum one dollar from the applicant for every four dollars received (25% match). Start-up businesses are eligible for direct loans on a case-by-case basis.
For detailed information about eligibility and other requirements, please see the request for proposal, application, and FAQ documents linked at the bottom of this page.
Available funds
The model is based on a revolving funding model, in which additional funding is made available as past recipients repay their loans. Funding availability will vary.
How to apply
The Environmental Assistance loan program accepts applications on a continuous basis. Submit completed applications to Grants-Loans.pca@state.mn.us.