Minnesota Small Businesses May Qualify for 0% Interest Environmental Improvement Loans

Small businesses can access financing of up to $75,000 for eligible equipment, environmental improvements and site cleanup projects

Minnesota small businesses looking to make environmentally beneficial improvements may be eligible for zero-percent interest financing through the Minnesota Pollution Control Agency’s Small Business Environmental Assistance Program.

The program offers loans ranging from $1,000 to $75,000, with repayment terms of up to seven years, to help qualifying small businesses purchase capital equipment that helps them meet or exceed environmental regulations. Funding may also be used for eligible costs associated with investigating and cleaning up contaminated sites.

A wide variety of Minnesota businesses have already taken advantage of the program, including convenience stores, breweries, auto body shops, gas stations, coffee roasters, glassware businesses and snow removal companies.

What Could the Funding Be Used For?

Eligible projects may include:

• Replacing refrigeration systems, walk-ins and cases with equipment using lower global warming potential refrigerants
• Switching to battery-powered commercial landscaping equipment
• Installing water-based paint booths at auto body shops
• Installing electric vehicle charging stations for fleet use
• Purchasing de-icing brine-making equipment, sprayers and related equipment
• Other capital equipment projects that provide measurable environmental and economic benefits

MPCA staff are available to talk directly with businesses about potential projects and help determine whether an idea may be a good fit for the program.

Loan Program Highlights

The Small Business Environmental Improvement Loan Program offers:

• 0% interest
• Loan amounts from $1,000 to $75,000
• Repayment terms of up to seven years
• Flexibility in the types of collateral accepted
• Awards made throughout the year

Who Is Eligible?

Applicants must:

• Be a 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 eligible site investigation and cleanup
• Have fewer than 100 full-time equivalent employees
• Have an after-tax profit of less than $500,000

Applicants must also demonstrate both the economic and environmental benefits of the proposed project. Economic benefits may include direct cost savings, reduced operating expenses, or reduced permit and regulatory obligations. Environmental benefits may include reductions in waste, emissions or material use.

Businesses interested in exploring whether a project could qualify are encouraged to contact:

Emery David, Environmental Specialist
Minnesota Pollution Control Agency (MPCA)
520 Lafayette Road
St. Paul, MN 55155
Phone: 651-757-2366
Email: emery.david@state.mn.us

Additional program information and application materials are available through the Minnesota Pollution Control Agency’s Small Business Environmental Improvement Loans webpage.

About the Minnesota Pollution Control Agency

The Minnesota Pollution Control Agency works to protect and improve Minnesota’s environment and human health. Through its Small Business Environmental Assistance Program, the agency provides resources and assistance to help small businesses understand environmental requirements, reduce pollution and identify opportunities for environmental improvements.