The Small Business P2 Loan Program encourages small businesses to apply for pollution prevention loans up to $400,000 at an interest rate of 5% or less. The lending institution participates in the loan with the MDEQ by providing half of the financing. Lending institutions can charge a competitive interest rate for their share of the loan, effectively blending the interest rate with the MDEQ's share so that the weighted average interest rate of the two loan portions does not exceed 5%. MDEQ'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.

A participating institution can be an in- or out-of-state bank, thrift or credit union. To become a participating lending institution, fill out, sign and submit a lender agreement form accompanied with Schedule A and Schedule B.

By using the financial assistance and credit evaluation expertise of the lending institution, the MDEQ's Small Business P2 Loan Program aims to assist small businesses in funding eligible P2 projects with low-interest financing. The lender ensures that the applicant has the cash flow to repay the loan. In addition, it also establishes the terms and conditions of the loan, and services the loan until it is repaid.