Replacing, Removing, or Upgrading Underground Storage Tanks Loan

Who can apply

Business

The loan applicant is a small business that employs fewer than 500 full-time and part-time employees, is independently owned and operated, and is not dominant in its field of operation.

Where: The grant applicant’s principal office and its officers must be domiciled in California.

Purpose

RUST loans may be used to finance up to 100 percent of the costs necessary to upgrade, remove or replace project tanks, including corrective actions, to meet applicable local state, or federal standards, including, but not limited to, any design, construction, monitoring, operation, or maintenance requirements adopted pursuant to Health and Safety Code sections 25284.1, 25292.05, 25292.4, or 41954.

Description

Replacing, Removing, or Upgrading Underground Storage Tanks (RUST) loans are available to assist small business underground storage tank (UST) owners and operators in financing up to 100 percent of the costs necessary to upgrade, remove, or replace project tanks, including corrective actions, to meet applicable local, state, or federal standards, including, but not limited to, any design, construction, monitoring, operation, or maintenance requirements adopted pursuant to Health and Safety Code section 25284.1, 25292.05, 25292.4, or 41954. Loan Terms Low-interest loans are available for between $10,000 and $750,000, for a term of 10 or 20 years. • Ten-year loans are secured by the Uniform Commercial Code Financing Statement on business assets. • Twenty-year loans are secured by a deed of trust on real estate with adequate equity. • A loan fee of 2 percent must be paid at final loan closing. • Please contact the State Water Board or your local Financial Development Corporation for the current interest rate. Eligibility Requirements Loan applicants must be a UST owner and/or operator and meet all of the following requirements: • The loan applicant is a small business that employs fewer than 500 full-time and part-time employees, is independently owned and operated, and is not dominant in its field of operation; • The loan applicant’s principal office and its officers must be domiciled in California; • All of the tanks owned and operated by the loan applicant are subject to compliance with Health and Safety Code chapter 6.7 and the regulation adopted pursuant to that chapter; • The loan applicant must provide financial and legal documents necessary to demonstrate the ability to repay the loan and availability of adequate collateral to secure the loan; and Revised 8/2020 • The loan applicant must have complied, or will comply, with the financial responsibility requirements specified in Health and Safety Code section 25299.31 and the regulations adopted pursuant to this section. This is not a reimbursement program. Work cannot begin until you have an agreement executed by the State Water Board.

Important dates

Opened

Jun 9, 2020

Application deadline

Ongoing

Expected award announcement

Ongoing

Period of performance

Ongoing

Funding details

Total estimated available

$750,000.00

Estimated amount per award

Dependant on number of submissions received, application process, etc.

Expected number of awards

Dependant on number of submissions received, application process, etc.

Letter of intent required

Yes

Matching funds

Not Required

Funding source

State

Funding source notes

Senate Bill 445

Funding method

Reimbursement(s)

Funding method notes

Borrowers submit disbursement requests using Std. 261 Form along with contractor's invoice of work performed.

How to apply

Read the full guidelines on the grantor's site, then apply there. Nothing is submitted through this site.

• Grant guidelines & application ↗
• State Water Resources Control Board ↗
• Grantor's own update list ↗
• Original listing on grants.ca.gov ↗

Questions about this grant: email: [email protected]; tel: 1-916-341-5765;