Revitalization Revolving Loans

Purpose:  Brownfield Redevelopment Loans (BRL) and Revitalization Revolving Loans (RRL) are designed to support the redevelopment of brownfield properties by providing low-interest loans to local units of government and other public bodies to investigate and remediate sites of known or suspected environmental contamination. 


Goals of the Program:  To ensure safe reuse of abandoned, vacant, or underutilized contaminated properties, and to promote clean up and redevelopment of brownfields.  Redevelopment of brownfield sites re-energizes local economies, strengthens neighborhoods, benefits the environment and protects public health.


Criteria:  A proposed project site must have economic development potential, although a specific development project is not required for a loan award. When a Brownfield Redevelopment Authority (BRA) is the applicant, the municipality under which the BRA was formed must make this pledge.  Loans are offered at an interest rate of no more than 50 percent of prime.  Currently the interest rate is set at 1.5%, simple interest. There are no payments or interest due for the first five years after a loan is awarded.  Annual payments begin in the fifth year of the loan. The full amount must be repaid within 15 years of the loan award. This arrangement provides an excellent opportunity for a community, or the BRA, to use tax increment financing (TIF) under the provisions of the Brownfield Redevelopment Financing Act, 1996 PA 381, as amended, to capture future taxes generated from the redevelopment of the property, to repay the loan. The legislation authorizing the TIF also allows the community to capture additional tax dollars after having repaid their loan, to use for future brownfield redevelopment activities in their communities.


Eligibility:  Any county, city, township, village, BRA, or other authority or public body created pursuant to state law may apply for a loan.  Eligible activities include environmental investigations and assessments, interim response activities, and in some cases demolition.  Response activities are eligible under the BRL funding but are not eligible for RRL funds.  Only one project may be awarded to an applicant during any fiscal year.


Application Process:  Applications are accepted on a continuing basis.  A single application is used for all Brownfield Redevelopment Program grant and loan funding sources.  Evaluation criteria include the potential economic benefit to the community, the environmental benefit, local support, and other factors.


Nominating Procedures:  Prospective applicants are asked to contact the program Brownfield Coordinator assigned to the area in which the project is located (DEQ Brownfield Coordinator) to discuss eligibility of the proposed project, confirm funding availability, and obtain an application.  Once submitted, applications will be reviewed by the DEQ staff for determination of eligibility.  In order to be competitive, proposed projects need to demonstrate the applicant's need for financial assistance, and/or a local financial commitment to the project.  Other criteria considered in the evaluation include whether the project demonstrates the principles of site reuse, greenspace preservation, smart growth, storm water runoff management, or other sustainable development concepts.


Deadlines: Applications are accepted on a continuing basis.


Timelines:  The review time from the date a complete application is received until a decision is made by the Director is usually three months.


Dollar Amount(s) Available (Min or Max):  Maximum loan amount is $1 Million per project for Brownfield Redevelopment Loans.  Maximum funding limits for the Revitalization Revolving Loan program depend on availability of funds.


Required Match:  No local match is required.


Source(s) of Funds:

For BRL-           Clean Michigan Initiative Bond Fund of 1998

For RRL -          The RRL Fund was originally capitalized with general funds, and additional funds per PA 480.



For BRL-           Part 196 of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended.

For RRL -          Part 201 of the Natural Resources and Environmental Protection Act, 1994 of PA 451, as amended.


Responsible Division/Office Contact:  Remediation and Redevelopment Division, Brownfield Redevelopment Program, 517-284-5113.


Phase-out/Expansion/Changes for Next Fiscal Year:  None.


Related Grants:  The Brownfield Redevelopment Program includes Brownfield Redevelopment Loans, Site Assessment Fund Grants, Site Reclamation Grants, CMI Waterfront Redevelopment Grants, and Tax Increment Financing pursuant to the Brownfield Redevelopment Financing Act, 1996 PA 381, as amended.



Request for Proposals:  Applications are accepted throughout the year.  Contact the DEQ Brownfield Coordinator in your area.