Minnesota Pollution Control Agency Environmental Assistance Loan Program

MINNESOTA POLLUTION CONTROL AGENCY ENVIRONMENTAL ASSISTANCE LOAN PROGRAM

Request for Proposals

Funding Guidance and Application Forms

August 2007 to June 30, 2009

I. Introduction

Protecting public health, the environment, and the economic viability of businesses can all be achieved through front-end solutions to pollution. To help small- and medium-sized businesses accelerate the application of waste and pollution prevention, and other environmental technologies, the Minnesota Pollution Control Agency (MPCA) is partnering with private financial institutions (e.g., banks) to offer commercial loans at substantially reduced interest rates.

The program is set up to allow MPCA to award loans up to a maximum of $100,000, at zero percent interest. The remaining loan funds are supplied by a participating financial institution at competitive market rates. An administrative fee is assessed to each loan to cover administrative and service costs.

II. Eligibility Requirements

Priority eligible applicants and loan projects

Rules governing the loan program allow the MPCA to set limits on the types of projects eligible for loan funds in this Request for Proposals (RFP). As loan funds are limited, priority consideration will be given to small and medium-sized businesses and institutions in Minnesota and to projects related to waste reduction, pollution prevention, and other prevention-based or preventative technologies and practices in Minnesota.

Waste and pollution prevention projects include, but are not limited to, raw material substitutions, process modifications, inventory control measures, and improved efficiency of machinery. Projects that primarily involve the application of pollution control or waste management technologies, or projects involving used tires, are not priorities for available loan funds.

Proposed loan projects that cannot be principally characterized as waste and pollution prevention projects are eligible, but will be entertained only if funds remain after all other applications for waste and pollution prevention projects have been considered. As funds are repaid, additional loans will be awarded for projects that will improve Minnesota’s environmental and economic quality.

Key Minnesota law definitions

Pollution prevention – eliminating or reducing at the source, the use, generation, or release of toxic pollutants, hazardous substances, and hazardous wastes.

Small and medium-sized businesses - as defined and determined by the Small Business Administration (SBA) at http://www.sba.gov/size/indexguide.html#manufac

Waste reduction – an activity that prevents generation of waste or the inclusion of toxic materials in waste, including reusing a product in its original form, increasing the life span of a product, reducing material or the toxicity of material used in production or packaging, or changing procurement, consumption, or waste generation habits to result in smaller quantities or lower toxicity of waste generated.

Maximum amount of funding

The maximum amount of funding per project from the MPCA is a $100,000 loan. Program guidelines call for loan funds to be matched by a minimum dollar-for-dollar match (1:1) by loans from a participating financial institution. Applicants may apply for loans exceeding $200,000, however, requested funds in excess of this amount will be provided by the participating financial institution at prevailing interest rates. Applicants are not required to contribute their own funds to the project.

Maximum interest rate and term

Loan funds provided by the MPCA are awarded at a zero percent interest rate. Loan funds provided by participating financial institutions are not state loans, and interest rates are privately determined between prospective borrowers and financial institutions. These prevailing interest rates are competitive rates offered by financial institutions and may be higher than prime lending rates.

The maximum interest rate is characterized as a blended interest rate, consisting of the average between the prevailing rate (offered by a financial institution) and a zero percent rate for the portion of funds provided by the MPCA.

An administrative fee will be added to each loan to defray costs associated with the servicing of executed loans.

The maximum term of loans shall be determined by the participating financial institution and the MPCA, not to exceed 10 years. The determination will be made based on the specific financial situation of each applicant.

Eligible loan costs

Eligible loan costs are limited to the capital costs of implementing waste or pollution prevention technologies in Minnesota. Capital costs are limited to the costs of acquisition of machinery and equipment, including freight and installation, and related leasehold improvements. Costs related to freight and installation shall be limited to no more than 20 percent of total project costs.

Ineligible loan costs

Ineligible loan costs are those costs incurred before or after the term of the loan agreement, including applicant’s cost to prepare the loan application, and the purchase of real property.

Legal basis

This RFP is issued pursuant to Minn. Stat. § 115A.0716, subd. 3 and Minn. Rules Parts 9210.0800 to 9210.0855. The MPCA reserves the right to amend this RFP at any time. Issuance of this RFP does not obligate the MPCA to make any loan awards.

III. Evaluation of Loan Applications

Applications will be evaluated based on an eligibility review of the applicant and proposed project. The MPCA will further evaluate applications determined to be eligible based on the following criteria:

§ consistency of proposed project with the goals in Minn. Stat. §§ 115A.02 and 115D.02

§ potential for proposed project to accomplish the priorities that are identified in this RFP

§ clarity and completeness of application

§ qualifications of the individuals who will perform the work described in the project

§ anticipated outcomes of the project

§ likelihood of achieving expected outcomes and documented waste and pollution prevention

§ cost-effectiveness of the proposed project

§ assets and resources available to the applicant to repay loan(s)

§ assets and resources available to the applicant to conduct the project

§ use of innovative technologies, methods, or techniques

§ applicability of the proposed project and future dissemination of the proposed project to other persons or organizations in Minnesota

The MPCA may solicit and shall consider recommendations from its employees, advisory councils, other Minnesota state agencies, or any independent consultant hired by the MPCA to assist in review of applications.

IV. How to Apply

The MPCA is now accepting loan applications for projects related to waste reduction, pollution prevention, and other prevention-based or preventative technologies and practices. Loan decisions will be made as applications are received. Applications will be reviewed and decisions will be made on a “rolling” basis. This approach provides for applications to be reviewed and decided upon on a continuous basis, based on available loan funds. As funds are repaid, additional loans will be awarded for projects that will improve Minnesota’s environmental and economic quality.

Application process

For this RFP, no pre-applications are necessary.

2. Prospective applicants are encouraged to contact the MPCA to discuss possible loan projects. The MPCA’s loan program coordinator, Mary Baker, can be reached by phone at 651-757-2208 or 800-657-3843, or by e-mail at

Using the Environmental Assistance Loan Program Application Form, complete and submit your application electronically as an attachment. In an effort to reduce waste, please e-mail your Environmental Assistance Loan Program Application Form, as an attachment, to

All applications sent by e-mail will receive an e-mail confirmation of receipt from the MPCA.

The MPCA will review each application to determine Applicant eligibility and if the proposed project meets the eligibility criteria and technical merit. Applicants will be notified as to whether their application has been approved or denied for a loan.

Upon approval, the application will be forwarded to a participating financial institution for financial review and consideration. The financial institution may be one of the applicant’s choosing, or may be from a financial institution selected by the MPCA.

The MPCA may request additional information during the application and evaluation process to clarify information provided.

The MPCA will award loans to those projects that best meet the evaluation criteria established in this RFP. No funds will be disbursed until:

a. the MPCA (through a participating financial institution) and the borrower have successfully entered into a loan agreement,

b. the MPCA has determined the total estimated project cost, and

c. the necessary project financing has been determined and is ensured by the borrower.

Participating financial institutions

Participating financial institutions will require applicants to provide additional financial information. Information requested by financial institutions will include, but is not limited to, business tax forms, current financial statements, corporate by-laws, credit history, and other information necessary to determine the approval or denial of a loan to a prospective borrower. The financial institution will act as the primary fiscal agent for loan repayment and administration.

Deadline for applications

Applications under this RFP may be submitted, on a rolling-basis, through June 30, 2009. Applications received after this deadline will not be considered.

Nonpublic data

All data in the application that meets the definition in Minn. Stat. § 13.37, subd. 1, paragraph (b), or is sales information, shall be classified as private or non-public data (Minn. Stat. § 115A.06, subd. 13). Loan recipients shall provide to the MPCA, for public distribution, reports about the results of funded projects in a way that does not disclose proprietary information.

V. For Assistance

For assistance or more information about the Environmental Assistance Loan Program, RFP, or application submittal process, please contact:

Mary Baker

651-757-2208 or 800-657-3843

Minnesota Pollution Control Agency

ENVIRONMENTAL ASSISTANCE LOAN PROGRAM

Application Form

Submission instructions and deadlines

E-mail Submittal Preferred
In an effort to reduce paper waste, electronic applications are preferred. E-mail the application as an attachment, using word processing software such as Microsoft Word or Corel Word Perfect format, to:
If you have questions or difficulty in electronically submitting the documents, contact Mary Baker at 651-757-2208 or 1-800-657-3843 or / Application Timeline
Application documents must be received no later than June 30, 2009. Decisions will be made on an ongoing basis as applications are received.
Faxes will not be accepted.
SECTION I. General Information
Owner/applicant name
Company name
Mailing address (number and street) / P.O. Box (if applicable)
City / State / Zip code / E-mail address (if available)
Telephone number (include area code) / Fax number (include area code)
SECTION II. Financial Institution
Name of financial institution (if known) / Contact person, title
E-mail address / Telephone number (include area code) / Fax number (include area code)
Mailing address (number and street) / P.O. Box (if applicable)
City / State / Zip code
SECTION III. Project Information
Amount of loan request
$ / Estimated total cost of project
$ / Total project costs eligible for loan
$
Estimated project start date / Estimated project completion date
Do you meet the Small Business Administration’s (SBA) definition of a small business?
a. <500 employees for most manufacturers Yes No
b. $5 million gross sales for most retail/service businesses Yes No
c. <100 employees for all wholesale trade industries Yes No
d. Other SBA size standard not listed above Yes No
(A guide to SBA’s definitions of small businesses is available at http://www.sba.gov/size/indexguide.html#manufac. An SBA Size Specialist employee can be reached in Chicago at 312-353-7674.)
If your business does not meet the SBA definition of a small business, it still may be eligible for a loan. Contact the Environmental Assistance Loan Program coordinator at 651-757-2208 for more information.
Type of business and SIC Code (if known) / Number of full-time employees
Primary product or service / Project title
Street address where project is to be carried out (if different from mailing address)
City / County / Zip code
Contact name (if different from owner)
If all correspondence is to go to the Project Contact, check this box.
Contact title / E-mail address
Telephone number (include area code) / Fax number (include area code)
SECTION IV. Project Description
Waste and pollution prevention, and toxicity reduction activity (Check the box, or boxes, that describes project.)
Equipment or technology modifications
Process or procedure modifications
Reformulation, reclamation, or redesign of products
Raw materials substitution / Housekeeping, maintenance, or inventory control improvements
Energy conservation projects
Resource and water conservation
Surface preparation and finishing
Was proposed project recommended as part of an environmental or waste and pollution prevention assessment conducted at the facility?
Yes No
Did the Minnesota Technical Assistance Program (MnTAP) or Minnesota Retired Engineers Technical Assistance Program (Minnesota ReTAP) perform a pollution prevention assessment at your facility?
Yes No
If yes, who assisted your facility in performing the assessment or provided advice on the project?
MnTAP
Minnesota ReTAP
Minnesota WasteWise / In-house/employees
Private consultant
Other
Has this business applied for or been awarded any other local, state, or federal grant, loan, or other assistance related to this project?
Yes No
Qualifications
Summarize the qualifications of applicant and those of other project participants.
<Type paragraph here>
History
Briefly summarize the history of applicant organization.
<Type paragraph here>
Project description
Briefly describe the opportunity, problem, issue, or need the project will address. Include a discussion of the technical and financial feasibility of the proposed project, and anticipated project outcomes. If applicable, briefly describe the economic and social benefits to be achieved by the project.
<Type paragraph here>
Please include a work plan describing each activity or task with an implementation schedule specifying timelines and persons involved. Also include a statement of the current status of the project.
<Type paragraph here>
Project budget
Please provide an itemized description of the project costs and correlate these itemized costs to the work plan and implementation schedule. Provide an itemized description of project financing, including applicant contributions and any other contributions from public and private organizations and sources.
<Type paragraph here>
SECTION V. Waste and Pollution Prevention Project Estimated Results
Describe how the project's impacts will be quantified and evaluated, including the criteria for a successful project.
<Type paragraph here>
Water conservation
Annual consumption before project (gallons) / Annual consumption after project (gallons) / Estimated economic savings