financial institution. In addition to the competitive interest rate charged by the participating financial institution on its matching funds, an administrative fee may be added to the participatory loan to defray costs associated with the servicing of the EA Loan by the financial institution. • Direct loans are limited to businesses/entities and provide for awards up to a maximum loan of $50,000 at four percent interest or half the prime rate, whichever is greater. Direct loans must be matched by a minimum one dollar from the applicant for every two dollars received. Start-up businesses are not eligible for direct loans. Available funds The model is based on a revolving funding mode, where additional funding is made available as past recipients repay their loans. Small business environmental improvement loans smallbizfunding.pca@state.mn.us The MPCA provides loans at zero-percent interest to small businesses for capital equipment purchases that help the company meet or exceed environmental regulations, and costs associated with the investigation and cleanup of contaminated sites. Eligibility Qualified borrowers must be an existing small business corporation, sole proprietorship, partnership, or association with: • Less than 100 full-time employees
• An after-tax profit of less than $500,000 • A demonstrated ability to repay the loan Available funds Loan terms and conditions: • Loan amount between $1,000 and $75,000 • Interest rate: Zero percent (0 percent) • Repayment term up to seven years • Flexibility in the types of collateral accepted • Awarded throughout the year
MINNESOTA DEPARTMENT OF AGRICULTURE
Minnesota Department of Agriculture (MDA) 625 Robert Street N. St. Paul, MN 55155-2538 651-201-6000 | mda.info@state.mn.us Loan and Grant Programs
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