Replacing, Removing, or Upgrading Underground Storage Tanks Loan

Portal ID:
1128
Status:
Active
Opportunity Type:
  • Loan
Last Updated:

Details

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.

 

Eligibility Requirements

Eligible Applicants:

  • 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.

Eligible Geographies:

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

Important Dates

Application deadline The date (and time, where applicable) by which all applications must be submitted to the grantor.
Expected award announcement The date on which the grantor expects to announce the recipient(s) of the grant.
June 2020 through December 2021
Period of performance The length of time during which the grant money must be utilized.
2 years

Funding Details

Total estimated available funding The total projected dollar amount of the grant.
$750,000
Expected number of awards A single grant opportunity may represent one or many awards. Some grantors may know in advance the exact number of awards to be given. Others may indicate a range. Some may wish to and wait until the application period closes before determining how many awards to offer; in this case, a value of “Dependent” will display.
Dependent
Estimated amount per award Grant opportunities representing multiple awards may offer awards in the same amount or in varied amounts. Some may wish to wait until the application period closes before determining per-award amounts; in this case, a value of “Dependent” will display.
Dependent
Letter of Intent Required? Certain grants require that the recipient(s) provide a letter of intent.
Yes ( see Description for details )
Requires Matched Funding? Certain grants require that the recipient(s) be able to fully or partially match the grant award amount with another funding source.
No
Funding Source: The funding source allocated to fund the grant. It may be either State or Federal (or a combination of both), and be tied to a specific piece of legislation, a proposition, or a bond number.
  • State

Funding Source Notes:

Senate Bill 445

Funding Method: The manner in which the grant funding will be delivered to the awardee. Funding methods include reimbursements (where the recipient spends out-of-pocket and is reimbursed by the grantor) and advances (where the recipient spends received grant funds directly).
  • Reimbursement(s)

Funding Method Notes:

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

How to Apply

State agencies/departments recommend you read the full grant guidelines before applying.

Resources

For questions about this grant, contact:
1-916-341-5765, RUST@waterboards.ca.gov