Environmental Assistance Loan Program
Planning/Financial #2.02 • December 2006
T
he Environmental Assistance Loan Program helps organizations move toward more environmentally sustainable practices. The program emphasizes pollution and waste prevention, materials reuse, recycling and market development of recyclables, and resource conservation—activities that go beyond traditional treatment, control, and disposal of wastes. Eligible loan applicants include small- and medium-sized businesses and institutions, and others involved in improving Minnesota’s environment. Preference will be given to projects related to waste reduction, pollution prevention, and other prevention-focused technologies and practices. As funds are repaid, additional loans will be awarded for projects that will improve Minnesota’s environmental and economic quality.
Participating financial institutions will require applicants to provide additional financial information. The financial institution will have responsibility for loan repayment and administration.
Eligible projects and costs
Projects eligible for loan funding should work toward one or more of the following:
• Waste prevention • Reuse or recycling of waste materials • Development of markets for recyclables
or compost
• Preventing or reducing the use of toxic
chemicals or hazardous substances Eligible loan costs are limited to the capital costs of implementing waste or pollution prevention technologies in Minnesota. Capital costs are limited to the costs of acquisition of machinery and equipment, including freight and installation, and related improvements. Ineligible loan costs are those incurred before or after the term of the loan agreement, including applicant’s cost to prepare the loan application and the purchase of real property. The maximum amount of funding from MPCA is a $100,000 loan. Priority projects will be identified in the RFP issued at the start of each competitive funding cycle.
How the program works
Program guidelines call for MPCA loan funds to be matched by a minimum dollarfor-dollar match (1:1) by loans from a participating financial institution. Loan funds provided by MPCA are awarded at a zero percent interest rate.
Participating financial institutions
Loan funds provided by participating financial institutions are not state loans, and interest rates are privately determined between prospective borrowers and financial institutions. Applicants are not required to contribute their own funds to the project.
How to apply
The MPCA announces its funding cycle through a Notice of Request for Proposals in the State Register. Proposal requirements
p-f2-02 Minnesota Pollution Control Agency • 520 Lafayette Rd. N., St. Paul, MN 55155-4194 • www.pca.state.mn.us 651-296-6300 • 800-657-3864 • TTY 651-282-5332 or 800-657-3864 • Available in alternative formats
are outlined in detail in the RFP. A copy of the RFP and the application form will be available from the MPCA subsequent to the notice. Upon approval, the application will be forwarded to a participating financial institution for review and consideration. The financial institution may be one of the applicant’s choosing, or one selected by the MPCA.
Review process
Applications will be evaluated based on an eligibility review of the applicant and proposed project. All eligible applications then undergo a technical review by MPCA staff. Staff may seek recommendations from MPCA advisory councils, Minnesota agencies, or other individuals and organizations.
Master Mark Plastics (Albany, Minn.), manufactures Rhino Deck, a low-maintenance composite decking. The company received a loan from the state of Minnesota to assist in recycling the HDPE used in the decking.
For more information
For more information on the Environmental Assistance Loan Program, or to be placed on an interested parties list for future loan opportunities, call the MPCA at 651215-0194 or toll-free at 800-657-3864, or look online: http://www.pca.state.mn.us/grants/index.html.
Success Story: Profile Powder Coating
In 2005, Profile Powder Coating, Inc. (Rogers, Minn.) installed a new powder-coating spray booth. The project was financed through an $85,000 Environmental Assistance loan and matching funds. The new booth has a transfer efficiency of 95 percent, allowing the company to reclaim and reuse 88,000 pounds of powder and save $270,000 annually. The loans also helped the company replace a convection oven with an infrared curing oven and upgrade to a more efficient air compressor. The infrared curing oven has improved powder coating of medium-density-fiberboard furnishings, and energy use per part was reduced by 33 percent, annually saving an additional $240,000.
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