Pollution Prevention Assistance Account (PPAA) Loan Program

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The Small Business Pollution Prevention Assistance Account (PPAA) provides low-interest, fixed-rate loans to small businesses undertaking projects which reduce waste, pollution or energy use. This funding can help small businesses comply with environmental regulations while benefiting from the economic benefits of preventing pollution or waste, or becoming energy efficient. The program is a collaboration between the Department of Environmental Protection (DEP) and the Department of Community and Economic Development (DCED).

Loan funds may be used to purchase equipment or implement process changes which fulfill one or more of the following pollution prevention goals:

• Reduce or reuse raw materials on site;
• Reduce the production of waste at the source; or
• Significantly reduce energy consumption.

Examples of projects that may qualify for the program include high efficiency lighting, digital x-ray equipment, HVAC upgrades, chillers, motors, and processing or manufacturing equipment. In addition, projects which reduce the use of volatile organic compounds (VOCs) or other chemicals, decrease packaging use, or install closed-loop systems for cooling or process water may be eligible.

Loan Terms and Eligibility

The interest rate for the loan is fixed at 2% for the duration of the term, with a maximum loan term of 10 years. The maximum loan amount is $100,000 for any 12-month period. Loans may be used to fund up to 75% of the total eligible project cost. Grants or other loans may be used to finance the remaining 25% of the project cost.

To be eligible, the business and project site must be located in the Commonwealth of Pennsylvania and employ 100 or fewer full-time equivalent employees. Projects must also have a payback period less than or equal to the term of the loan, and the expected benefits must extend beyond the term of the loan.

DEP and DCED anticipate businesses will be able to pay back the loan through savings realized through reductions in the costs of raw materials, waste disposal, or energy use.

Application

The loan package consists of three parts: The Program Guidelines, a Technical application, and the Financial application. Click on the links below to access:

• Program Guidelines (PA Industrial Development Authority website)
• Technical Application - Determination of Eligibility
• Financial Application - Department of Community and Economic Development’s Single Application for Assistance (on-line application)

Application Process

• Review the guidelines to determine both your eligibility as a business, and to see if your project will qualify.
• Complete the DEP Determination of Eligibility application. Submit to DEP via e-mail or U.S. mail (address provided on the application). DEP will determine if the application meets the technical requirements of the program. If approved, the Small Business Ombudsman will issue an approval letter to both the applicant and DCED.
• After obtaining approval from DEP, complete and submit the "Single Application for Assistance" through one of the approved Community Economic Development Organizations (CEDOs). The CEDO you choose will assist in preparing and completing the application for final submission to DCED. The CEDO may charge an application fee for providing assistance with completing the application.

Questions