LOANS TO
SMALL
BUSINESSES
UNDER THE
FEDERAL
WATER
POLLUTION
CONTROL
ACT-(92-500)
ENVIRONMENTAL PROTECTION AGENCY

STATE PROGRAMS BRANCH

ROOM 801 - EAST TOWER  -

401 M STREET, S.W.    |
WASHINGTON, D.C. 20460

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BA CKGROUFID
The Federal Water Pollution Control
Act of 1972 set as its objective to restore
and maintain the chemical, physical and
biological integrity of our nation’s waters.
To meet this objective, point sources of
pollution had to be controlled, and, ef-
fluent limitations are being set on all
point sources into our nation’s waters.
Under Section 8 of this Act, which is
entitled “Loans to Small Business
Concerns for Water Pollution Control
Facilities,” amendments were made to
Section 7 of the Small Business Act.
Section 8 authorizes loans to assist
small business concerns in adding to
or altering their equipment, facilities,
or methods of operation in order to
meet the water pollution control re-
quirements established under the FWPCA.
The loans are to provide relief to
certain small businesses who might
otherwise suffer substantial economic
injury without some financial assis-
tance. The loans are provided when
commercial loan sources are unavail-
able or can only provide part of the
required loan

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WHO  IS ELIGIBLE?
     Section 8 of the FWPCA authorizes
 the  SBA to  make  loans  to  assist  any
 small  business concern  in  effecting ad-
 ditions to or  alternations in the equipment,
 facilities, or methods of operation of such
 concern to  meet water pollution  control
 requirements under the FWPCA, if the con-
 cern is likely  to suffer substantial economic
 injury without assistance.  SBA has defined
 a  "small" business in standards that are
 available  at  any SBA field office.   In es-
 sence, the applicant  must be an indepen-
 dently owned and operated small business,
 not dominant in its  field, and must meet
 employment or sales size standards estab-
 lished by SBA. In addition, a small concern
 may be  eligible for a loan if its requirement
 for a loan is a result of engaging in one of
 the following  activities:
     1.    The  business has an effluent  dis-
charge requiring a National Pollution Dis-
charge Elimination System permit under
Section 402 of the  FWPCA.
    2.    The business emits discharges
through a sewer line into a publicly owned
treatment works, and the city or town
requires the  treatment  of waste  discharge.

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3. The business plans to discharge
into a municipal sewer system through the
construction of a lateTal or interceptor sewer.
4. The business is subject to the
requirements of a State or regional authoT-
ity for controlling the disposal of pollutants
that may affect groundwater.
5. The business is subject to a Corps
of Engineers permit for disposal of dredged
or fill material.
6. The business is subject to Coast
Guard or State requirements regarding the
standard of performance of marine sanita-
tion devices controlling sewage from vessels.
7. The business is implementing a
plan to control or prevent the discharge or
spill of oil or other hazardous substances.
r ,w& ’i ur ia L ]U W L ?L
Loans “shall be made only if . . . such
additions or alterations are necessary and
adequate to comply with the requirements
established under the Federal Water Pollu—
lion Control Act.” (Section 8(a) (2) (B)).
This statement from the Act has been in-
terpreted to mean that not all requirements
under the Act must be met by the work
3

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covered by the proposed loan. The only
criteria for eligibility is that the proposed
work must meet the ‘necessary and ade-
quate’ test for one or more of the appli-
cable standards under the Act. In addition,
loans may be granted for additions or altera-
tions that will achieve a level of performance
above the requirements as they now stand
but which anticipate more stringent require-
ments being written into a permit or stan-
dards in the years to come.
a
Applications to EPA should be made
after a permit or other official notification
containing requirements is issued to or
placed upon you by the Environmental
Protection Agency, Corps of Engineers,
Coast Guard. State, municipality, or re-
gional management authority. These re-
quirements will specify certain conditions
or schedules to be met; only after these
requirements are known can the determi-
nation of necessity and adequacy be con-
sidered.
18á 45 gg g
An application need not be in any
particular form but it must include the
following:
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Name of applicant
Mailing address
(Address of affected facility, if
different, from above)
2. Signature of owner, partner, or
principal executive officer request-
ing the statement
3. Standard Industrial Classification
(SIC) number for business for
which an application is being sub-
mitted (see Standard Industrial
Classification Manual, 1972 edi-
tion, or describe the type of busi-
ness activity if SIC is not known)
4. Description of process or activity
generating the pollution to be
abated by additions, alterations,
or methods of operation covered
by application
5. Specific description of additions,
alterations, or methods of opera-
tion covered by the application.
This would include, where appro-
priate:
a. summary of construction to
be undertaken
b. listing of major equipment to
be purchased or utilized in
operation
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c. purchase of any land or
easements necessary to op-
eration of facility
d. other items deemed pertinent
(information considered as a
trade secret shall be identi—
fled as such)
6. Declaration of requirement(s) for
compliance with which alterations,
additions, or methods of operations
are claimed to be necessary and
adequate
7. If you have received a permit from
a State Water Pollution Control
Agency within the preceding two
years, and the permit was not an
NPDES permit issued under the
Federal Act, and where the permit
relates directly to abatement of
discharge for which statement is
sought, a copy of permit should
be included.
8. Any written information from a
manufacturer, supplier or consulting
engineer, or similar independent
source, concerning design capabil-
ities of the additions or alterations
covered by the applications. This
would include warranties or certi-
fications obtained from or pro—
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vided by such sources which
would bear upon design or per-
formance capabilities. (Require-
ment may be waived if there is no
independent source for the informa-
tion described).
9. Estimated schedule for construc-
tion or implementation of altera-
tions, or methods of operation
10. Estimated cost of alterations, ad-
ditions, or methods of operation,
and where practicable, individual
costs of major elements of con-
struction to be undertaken
11. Information on previously receiv-
ed loan assistance under this sec-
tion for facility or method of
operation, description and dates
of activity funded
12. NPDES permit number if applicable.
WHAT C6LLA1EL t&
IS NECESSARV
You, the applicant, must be in sound
financial condition and give reasonable as-
surance that the loan will be repaid. The
applicant must pledge whatever collateral
or give such guarantees as he can. When
the SBA loan is used to acquire fixed as-
sets, these must be pledged as security.
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Personal and/or business assets should
be used to the greatest extent possible but
it is not expected that they will be needed
to the point of curtailing working capital
or reserve requirements.
LU 7AW2 OUáJY 9t IIV )7
Loan Maturity is based on the appli-
cant’s need and earnings, but repayment
must be made at the earliest possible date.
The maximum term is 30 years with the
exact term for a particular loan to be ne-
gotiated with the SBA.
IIWJL ’fl 4 10W t?L L
If a conventional bank loan is not
available, SBA has several loan options avail-
able. SBA may guarantee up to 90 percent
of a loan to a small business firm or, if this
financing is not available, SBA may enter
into an immediate participation basis loan
with a bank. A direct loan will be con-
sidered only if these other forms of financ-
ing are not available in an amount up to
$500,000, which may be exceeded only if
the Administrator of the SBA finds substantial
hardship.
Within certain limitations the private
lender sets the interest rates on guaranteed
loans and on its portion of immediate
participation loans.
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Interest rates on SBA’s portion of im-
mediate participation, as well as direct loans,
may be obtained from any SBA office as the
rate is subject to change, as it corresponds to
the average annual interest rate on all interest
bearing obligations of the United States.
SMALL BUSINESS SIZE
Note that only small businesses are
eligible for relief under the provisions of the
Act. Before you go to the time, trouble,
and expense of preparing an application, be
very sure of your size classification. If
there is any doubt about the classification
of your business see Part 121.3—10 of the
Small Business Administration Rules and
Regulations or contact your local SBA
office to determine the applicable employee
or sales standard.
EPA ‘S TECHNICA L REVIEW
However, before SEA will review your
eligibility for these loans, your credit infor-
mation, or your ability to repay the loan;
the Environmental Protection Agency must
perform a technical review of the applica-
tion to determine that the proposed addi-
tions or alterations are necessary and ade-
quate to comply with one or more appli—
cable standards.
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You obtain this review by submitting
two copies of the application for Statement
of Compliance to the EPA Regional SBA
Coordinator. Addresses are listed on the
last page for the EPA Regional Office in
your Region. Processing time at EPA
should generally not exceed 45 working
days from the time a complete application
is received.
The review by EPA may result in one
of three distinct determinations:
a. Approval: A written statement
will be provided to you attesting to this,
with a copy sent directly to the appropriate
SBA Office.
b. Conditional Approval: Some of
the items were acceptable and some were
not. A copy of the conditional approval
will be sent to the appropriate SBA Office.
Appeal of the rejected portion may be
made without prejudice to the approved
portion. You may use a conditional ap-
proval to secure a loan.
c. Disapproval: You may make an
appeal within 60 days directly to the EPA
Deputy Administrator in Washington.
The EPA review is for technical purposes.
Do not send detailed company financial and
credit data to EPA. EPA may empower States
to conduct this review and to issue statements.
10

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/ 7L J O 1 8ØI J Q II J L I5YE 1YOL TC7
Submit the EPA approval or condi-
tional approval to the appropriate SBA
Office with the completed SBA loan ap-
plication. Once SBA has received your
complete application package you should
plan for a review time of about four
weeks.
Ft 7 I I h X74T1 1ll l 2Q
For further information contact either
the EPA Regional or SBA District Office.
The EPA Regional Office will also be able
to provide you with a copy of the regu-
lations that were developed for this pro-
gram, and which should help you in pre-
paring your application for technical review.

HEADQUARTERS
Mr. Sheldon Sacks
Small Business Section
Water Planning Division - WH-454
Room 801 East Tower
401 M. St. S.W.
Waahington, D.C. 20460
AC 202 755.6023
11

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STA TES CO VERED EPA
REGION I
CONN. Ms. Claire Matassoni
ME. Environmental Protection Agency
MASS. Room 2109
Nil. John F. Kennedy Federal B ldg.
LL Boston, Mass. 02205
VT. AC 617.223-5061
REGION I II
NJ. Mr. Richard Baker
N.Y. Chief, Status of Compliance Branch
P.R. Office of the Regional Administrator
V i. Environmental Protection Agency
Room 10009, 26 Federal Plaza
NewYork, N.Y. 10007
AC 212 264-9881
REGION UD
DEL. M i. Paul Ambrose
MD. Environmental Protection Agency
PENN. Curtis Building
W. VA. 6th & Walnut Streets
D.C. Philadeiph i n, PA. 19106
VA AC 215 597-4053
REGiON li v
ALA. Mr. Calvin Taylor
P I E S. Water Programs Office
GA. Environmental Protection Agency
KENT. 1421 Peachtree Street, N.E.
MISS. Atlanta, Ga. 30309
N.C. AC 404 526-3633
S.C.
TENN.
REGION V
ILL. Mr. Merle (Bud) Tellekson
UND. Surveillance and Analysis Division
W]ISC. 230 South Dearborn St.
MICH. Chicago, III. 60604
MINN. AC 312 353-1458
011010
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REGION VI
ARK. Dr. Richard Hill
LA. Director of Water Division
N.M. Environmental Protection Ageicy
OKL. Suite 1100
TEXAS 1600 Patterson Street
Dallas, Texas 75201
AC 214 749-1267
REGION VII
KAN. Mr. Paul Wafter
MO. Dr. Dennis Degner
NEBR. Environmental Protection Agency
IOWA 1735 Baltimore Avenue
Kansas City, Missouri 64108
AC 816 3742725
REGION VIII
cow. Mr. William H. Hormberg
WYO. Office of Grants
MONT. Environmental Protection Agency
ND. Suite 900, 1860 Lincoln Street
S.D. Denver CO. 80203
EThAH AC 303 837-3961
REG1ON IX
ARIZ. Mr. Wihinm Pierce, Mr. Ray Seid
CALIF. Chief of Permits Branch
1MW. Environmental Protection Ageity
NEV. 100 California Street
AM. SAMOA San Francisco, Calif. 94111
GUAM AC 415 556-3450
TRUST TERR.
REGION X
ALASKA Mr. Dan Bodien
ORE. Environmental Protection Agency
WASH. 1200 6th Avenue
IDAHO Seattle, Washington, 98101
AC 206 442-1270
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# 1tO 8r4
I _
ENVIRONMENTAL PROTECTION AGENCY
STATE PROGRAMS BRANCH
ROOM 801 - EAST TOWER
401 M STREET. SW.
WASHINGTON, D.C. 20460

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