The Small Business P2 Loan Program allows small businesses to apply for pollution prevention loans up to $400,000 at an interest rate of 5% or less. P2 loans are available through a lender of the business' choice. The lender participates in the loan with MDEQ by providing half of the financing.

Are you eligible to apply?

If your business is...

• independently owned and operated; 
• not dominant in its field;
• or employs 500 full-time people or less 

...you meet the small business requirement of the loan program and may be eligible for a low interest loan. 

Loans are available to all private business sectors, including manufacturing, farming, retail and service.

What types of projects meet the P2 criteria?

P2 project recommendations from a Retired Engineer Technical Assistance Program (RETAP) audit or qualifying polluting prevention expenditures, including on-site:

• equipment or technology modifications; 
• process or procedure modifications; 
• raw material substitution; 
• housekeeping, maintenance, inventory control improvements; 
• specific types of employee training; 
• on-site energy conservation projects; 
• on-site water conservation projects; 
• or other pollution prevention projects.

Ineligible projects or expenditures include prior incurred costs, refinancing, labor or operating costs, taxes, fees and land acquisitions, and projects whose primary purpose would be to increase production.

A small business shall not receive more than one (1) loan in any three (3) year period. 

How do you apply?

• Select a pollution prevention project for your place of business.
  • ESSD staff are available to assist you prior to applying for a loan in identifying eligible projects or discussing the application process. For this optional pre-loan service, contact  Karen Edlin, Small Business P2 Loan program manager, at (517) 373-0604 or (800) 662-927      
• Get a price quote from your contractor and estimate the project schedule. 
• Obtain application forms from the Environmental Science and Services Division. 
• Work with your lender. 
  • Talk to your lender about your loan and credit worthiness. Your lender can be an in- or out-of state bank, thrift or credit union (but not a leasing company).
  • Fill out a project eligibility application, available through the MDEQ.
  • Either you or your lender can send your project application request to the MDEQ for project eligibility determination.
  • Your lender evaluates your credit worthiness and ability to repay debt and establishes the terms and conditions of the loan.
• After your project is approved:
  • Submit a signed Supplemental Agreement.
  • Submit a signed Lender Agreement.   
  • Submit a draft Loan Agreement outlining the terms of the loan. The Loan Agreement needs to cross-reference the Supplemental Agreement.   
  • Submit a Loan Amortization Schedule (found in Lender Agreement). These documents will be reviewed and you will be informed of any recommended changes and asked to submit an executed loan agreement (ie: signed by the borrower and the lender). After receiving the executed loan agreement, the MDEQ will execute the Lender and Supplemental Agreements and approve disbursement of its loan portion on the lender.
• After your project is completed, submit a summary of actual pollution prevention results to the Environmental Assistance Division, 90 days after it is completed.

All these steps are also outlined in the Program Brochure for Small Businesses.