SBA Loan Program for Pollution Control Businesses

The SBA Loan Program for Pollution Control Businesses is essentially a type 7(a) loan guarantee which includes the proviso that all proceeds of the loan must be used in and for pollution control facilities as fixed-assets only.

Are There Conditions I Should Be Aware Of?


The most important condition that affects your eligibility for this particular SBA loan program is the use to which you put the proceeds. Such uses can include the planning, design or installation of any facility or other eligible asset (such as vehicles or equipment) which prevents, reduces, abates or controls any form of pollution. As long as this proviso is followed in conjunction with all other 7(a) SBA loan program requirements, you should have no trouble qualifying for the loan.

Could This Affect My Loan Agreement In Other Ways?

Given the stricter conditions applied to the use of the loan proceeds, other facets of the 7(a) small business loan program will be affected. The actual loan maturity for 7(a) loans, for instance, maxes out at 25 years for real estate and equipment. However, loans used to finance fixed assets are also limited to the economic life of those assets with the cap set at 25 years. In all other ways the loan directly follows normal 7(a) SBA loan program guidelines.