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 ------- 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 ------- 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. ------- 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 ------- 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: 4 ------- 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 5 ------- 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— 6 ------- 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. 7 ------- 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. 8 ------- 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. 9 ------- 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 ------- / 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 ------- 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 12 ------- 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 13 ------- ISA FIELD OFFICES ADDRIUEI S lID TSLIFNONE NWISIN$ IS R. 1 1.S Ciii... INC I 41 Dl i i i. Qilt.. (DO) I TELSFMDII I NIP 5fl0 P oe FUS lC hit DCLVI 5, I L . Flue I . I I . Fl,c. 11171 321 2I00 I, Swim.q C Thin Ate I.e. Oi l II I. 011 1770 3. 9.... 343 Sc,.i..ng 4(0 N .e I i lea 710 Scull,,. I ? Sm.. Ii 9... 210 ‘3001 3N4 It O h 221 7172 1.. N. . ’ 710 CCli 020-loll Pit.. 1104 Pl.e. 1604(00 PP... II.. Fle. IN N., A,, (2151 763.0144 s. Sea 1410 Pie .. FtySiie & 1.171 1 0.. l. IS ( I iS) 170 3170 elSiIlin,S,. Res , 1117 P. 1 0. 15.1.. . ( 716 (1.1 1311 1W ? ) 7 (4 3941 A.. 7 — i n 7..... Sill 0... 120 N i Ca.memo. Sail,... (00. F 11 1 3. 1011441 0 .111 (ill ) 241 3740 SOlemN W( L0000 Suite 544 1...,. En. 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