Pollution Prevention Assistance Account (PPAA)

Assists Pennsylvania small business enterprises in implementing pollution prevention and energy-efficient projects, enabling these businesses to adopt or install equipment or processes that reduce pollution or energy use.

A for-profit enterprise, excluding mercantile and service related enterprises, that has no more than 100 total employees and acquired or installs pollution prevention or energy efficient equipment or processes. Eligible types of businesses include: agricultural, industrial manufacturing (research and development), export service, hospitality, defense conversion-related, computer-related services, construction and child care enterprises.

Acquisition or installation of pollution prevention equipment or processes.

$100,000 or 75% of the total project, whichever is less. Borrower would finance the remaining 25% of the total eligible project cost with proceeds from a private lender or equity from the owners or investors. Matching lending sources must have equivalent or longer terms.

Equipment may be ordered but not installed or operated prior to the Department's approval of the loan. Applicant takes such actions at his or her own risk. Commenced projects are not eligible.

An annual fixed interest rate of 2%. The term of the loan can be up to 10  years or the life of the asset, whichever is less.

The Department will not charge a fee. Fees charged by the Area Loan Organization may not exceed 2% of the loan amount and may not be included in the project cost.

All loans must be secured with a lien position on the asset being financed and the company guarantee. DCED may require personal guarantees of principals.

Please contact Larry Morgan for full details and assistance.