LendersContact: Chad Rogers 517-284-6872Agency: Environment, Great Lakes, and Energy
The Small Business Pollution Prevention (P2) Loan Program encourages small businesses to apply for P2 loans of up to $400,000 at an interest rate of 5% or less. Participating lenders may be any in- or out-of-state bank, thrift or credit union able to partner with the Department of Environmental Quality (DEQ) on P2 project financing. The lender provides half of the financing, ensures that the applicant has the cash flow to repay the loan, establishes the terms and conditions of the loan, and services the loan until it is repaid.
By using the financial assistance and credit evaluation expertise of the lending institution, the DEQ's P2 Loan Program aims to assist small businesses in funding eligible P2 projects with low-interest financing. How is the interest rate determined? The DEQ charges 0% interest on its share of the loan allowing lending institutions to charge a competitive interest rate for their share of the loan, effectively blending the interest rate with the DEQ's share so that the weighted average interest rate of the two loan portions does not exceed 5%.
The DEQ's maximum participation is $200,000 from the P2 Loan Fund. Project costs that exceed the program's $400,000 cap may be covered by separate financing from the lender. More detailed information is available in the Program Brochure for Lending Institutions.