Upgrade Loan Program
Upgrade Loan Program
THE UPGRADE LOAN PROGRAM IS NOT CURRENTLY ACCEPTING LOAN APPLICATIONS
The Upgrade Loan Program assists owners of regulated underground storage tanks to upgrade or remove their underground storage tank systems to meet EPA upgrade requirements. The program was implemented through Act 13 of 1998. This low interest loan is funded by the Underground Storage Tank Indemnification Fund (USTIF) and administered by the Department of Community and Economic Development (DCED).
The New Upgrade Loan Program Can Help You. Avoid enforcement actions. Reduce costs associated with repeated tank excavations and large cleanup costs from product release. Limit liability by reducing the chance of product release. Save money by reducing product leaks or spills. Protect public health and the environment.
Let us help you meet the UST requirements affordably.
If you own a regulated underground storage tank (UST) system which does not meet the U.S. Environmental Protection Agency (EPA) technical standards, you must act now to avoid enforcement actions.
Close the tank system. Replace the tank system. Upgrade the tank system.
- Your choices are simple:
- All these changes cost money:
$12,000 to $15,000 for tank closures. $2,500 to $7,500 for spill and overfill protection. $20,000 to $45,000 for spill, overfill and cathodic protection. $50,000 to $200,000 for entire UST system replacement. Frequently Asked Questions
What is the Upgrade Loan Program?
The Upgrade Loan Program assists owners of regulated USTs in upgrading or removing their UST systems to meet EPA upgrade requirements.
Who qualifies for the Upgrade Loan Program?
Owners of regulated USTs qualify for the Upgrade Loan Program (owners of six or fewer regulated USTs have priority for the first 90 days of each fiscal year).
What activities are eligible for financing under the Upgrade Loan Program?
The loan can be used to finance all or a portion of the following costs: Cathodic protection systems. Spill and overfill prevention. Tank removal or closures. Upgrade of existing tanks. Leak detection devices. Engineering, design and permitting associated with upgrading. Construction and installation directly associated with upgrading. Cost of new tanks. Piping. Dispensers. Stage II vapor recovery systems.
What activities are ineligible for financing under the Upgrade Loan Program?
The following costs are ineligible for financing: Refinancing. Building and landscaping improvement. New facilities. Other costs unrelated to upgrading.
What are the loan terms and conditions? Maximum loan amount: $500,000 per UST owner or 75 percent of the total eligible project cost, whichever is less. Repayment period: Up to 10 years. Interest Rate: Equal to the 5-year U.S. Treasury Note rate fixed at the time the application is presented. Fees: Two percent loan commitment fee, due at loan commitment. Collateral: Collateral will be requested as necessary. Private financing: 25 percent private sector match required, of which at least 10 percent must be cash equity. The remainder may be bank or vendor financing. What work can be done prior to loan approval?
All work may be done if the tank owner requests a non-prejudicial approval letter from DCED, the tank owner may continue with the project while the loan is under review.
Have more questions?
If you have any questions or would like to receive an application, simply call the DCED toll-free at 1-800-379-7448 and they will direct you to a certified loan organization office nearest you.