Underground Storage Tank Upgrade Loan Program (USTLP)

Assist the owners of regulated underground storage tanks to upgrade or remove their underground storage tank systems to meet federal  Environmental Protection Agency (EPA) upgrade requirements. The program is funded by the Pennsylvania Insurance Department and is administered by the Department of Community and Economic Development (DCED).

Owners of registered underground storage tanks (UST). Owners of six or fewer tanks have priority for the first 90 days following July 1^st of each fiscal year.

Loan proceeds may be used to finance all or a portion of the following costs:

• tank removal or closures and/or replacing tanks

• cost of new tanks

• upgrade of existing tanks

• piping

• leak detection devices

• dispensers

• engineering, design and permitting costs associated with upgrading

• all construction and installation costs directly associated with upgrading

• fees (restrictions apply)

$500,000 or 75% of the total eligible project cost, whichever is less. 10% of the total eligible project cost must be cash equity. The remaining 15% may be financed.

Tanks and piping may be ordered, received and a contract may be executed, but excavation or installation can not take place prior to the Department of Insurance's approval of the loan. Commenced projects are not eligible for funding; however, a non-prejudicial approval can be requested.

The interest rate is fixed for the term of the loan and shall equal the current interest rate of a five-year United States Treasury note. The term of the loan is for up to 10 years.

A 2% loan commitment fee is due upon acceptance of the loan.

All loans will be guaranteed by the principals of the borrower. Other collateral will be requested as necessary.

Please contact Larry Morgan for full details and assistance.