Michigan Environmental Council

Michigan
Environmental Report

Volume 22 . Number 5
October 2004

PURPOSE
Founded in 1980, MEC is a coalition of over 60 environmental, public health, and faith-based organizations with nearly 200,000 individual members. For over 20 years, MEC has provided a voice at the State Capitol. In addition to serving as a clearinghouse of environmental information, MEC develops public policy, educates elected officials and the public, and provides training and support to member organizations.

SUBSCRIBE

OFFICERS

Chairperson
Chris Graham,
Michigan Natural Areas Council

Vice Chair
Vicki Levengood,
National Environmental Trust

Vice Chair
Terry Miller,
Lone Tree Council

Treasurer
Tom Leonard,
West Michigan Environmental Action Council

Secretary
Brian Imus,
PIRGIM

MEC STAFF

President
Lana Pollack

Policy Director
James Clift

Associate Director
Patrick Diehl

Land Programs Director
Conan Smith

Special Projects Coodinator
Brad Garmon

Office Manager
Judy Bearup

Member Services Director
Michele Scarborough

Policy Specialist
David Gard

Policy Advisor
Dave Dempsey

Environmental Campaign Coordinator
Wendi Tilden

ECCO Field Director
Stephanie Anderson

Land Programs Assistant
Ben Stupka

MER Design & Layout
Rose Homa

Legislature OKs small business program fix sought by MEC

The Small Business Pollution Prevention (P2) Loan Program-established under the 1998 Clean Michigan Initiative (CMI) bond approved by voters-is now new and improved, thanks to MEC support.

The program was advocated by MEC in exchange for its support of the $675 million 1998 bond program campaign. MEC believes small businesses need upfront capital to make pollution prevention investments that benefit both the business and the environment.

Previously, low-interest loans up to $100,000 were available to businesses with 100 employees or less. Legislation passed in September has expanded the maximum loan amount to $300,000 and has broadened the eligibility requirements to include businesses with 500 employees or less.

With over $5 million still available to lend at interest rates of 5% or less, the loan program is poised to help existing Michigan businesses cut costs and operate more efficiently and competitively by reducing the amount of waste they produce or by conserving water and energy.

Over $1.4 million has been disbursed as the program finishes its fourth year of operation. Half of the loan monies come from the CMI Bond fund proceeds set aside for the loan program. Banks through a loan participation arrangement with the Department of Environmental Quality (DEQ) provide the other half of the loan proceeds. A wide variety of businesses have applied for loans, including dentists, metal finishers, agricultural, automotive, dry cleaners, an abrasives manufacturer, a plastics manufacturer, a printer and golf courses. The diversity of applicants attests to the program's attraction to all business sectors.

The low interest rate can be attractive to borrowers who are used to paying a premium above the prime rate, because the maximum interest rate on P2 loans is 5%. Although prime rate is still slightly below 5% (currently it's at 4.5%), recent borrowers under the program obtained loans in the 3% to 4% range. Further, businesses experience significant cost savings after implementing their projects-paybacks on pollution prevention investments are generally one to three years. Proposals that reduce or eliminate waste, including environmentally-sound reuse or recycling, or that conserve water or energy are considered for loan funding.

Loans are available to all private business sectors, including manufacturing, farming, retail and service.

Persons interested in learning more about the low-interest P2 Loan program can contact Sharon Goble at (517) 241-8280 or by e-mail: gobles@michigan.gov.