Replacing Underground Storage Tank (Rust) Loan Program
Purpose: Replacing Underground Storage Tank (RUST) Loan Program - a reinstated program of the State Water Resources Control Board. For more information, see: RUST Alert PDF or State Water Resources Control Board web site.
Use Of Funds: May finance underground storage tank (UST) removal and replacement, under-dispenser containment, leak detection equipment, piping, enhanced vapor recovery, and dispensers.
Financing Method: Loans can finance 100% of eligible costs.
Required Application Documents:
Qualifications: Owners or operators of small independent UST facilities. For small business status, the applicant must employ fewer than 500 full-time and part-time employees, is not dominant in its field of operation, the principal office of the small business shall be domiciled in California, and the officers of the small business shall be domiciled in California.
Maximum Amount: Loans up to $750,000 per borrower.
Maturity: Maximum Term is 20 years.
Interest Rate: Current interest rate ranges between 1% up to 5% Fixed.
Collateral: Best available collateral which will include but not be limited to a blanket filing on all company assets.
Fees: There is a 2% loan origination fee.
Contact: Michael Ocasio at (714) 571-1900 or via email at firstname.lastname@example.org
Loan Amount: Loans can range from $10,000 to $750,000.
Eligible Uses: Costs needed to get into compliance with the Senate Bill 989. Typically this includes plans, permits, drawings, excavation and removal of tanks, installation of new tanks, double walled piping, dispensers, under-dispenser, containment boxes/pans, electronic monitoring system and enhanced vapor recovery system.
Loan Term and Collateral: The loan term is ten years when secured by Uniform Commercial Code Financing Statement on business assets (UCC). Or twenty years when the loan is secured by a Deed of Trust on real estate with adequate equity.
Interest Rates and Fees: Below conventional market rates. Loan fee of 2.0% paid at final loan closing.