Small Business Pollution Prevention Assistance Account Loan Program
Administered by Pennsylvania Department of Environmental Protection and Department of Community and Economic Development
This program is for small businesses (100 or fewer full-time employees) in Pennsylvania seeking low-interest loans to fund energy efficiency or pollution prevention projects. You can borrow up to $100,000 per 12-month period at a fixed 2% interest rate for up to 10 years, covering up to 75% of eligible project costs—examples include HVAC upgrades, high-efficiency lighting, chillers, and motors. To qualify, your project's payback period must not exceed the loan term, and benefits must extend beyond it; start by completing DEP's Determination of Eligibility application and submitting it to the Small Business Ombudsman at ra-epombudsman@pa.gov or (717) 783-0909.
This program enables your Pennsylvania small-business customers to finance pollution-prevention and energy-efficiency upgrades at low cost, with loans covering 75% of project costs up to $100,000 over 10 years at 2% fixed interest. Eligible projects must reduce raw material use, minimize waste generation, or significantly cut energy consumption; typical installations include HVAC systems, motors, chillers, and lighting retrofits. The program requires customers to demonstrate a payback period not exceeding the loan term and benefits extending beyond it; customers work directly with a Community Economic Development Organization (CEDO) after obtaining technical approval from DEP.
The PPAA is jointly administered by the PA Department of Environmental Protection (DEP) and Department of Community and Economic Development (DCED), targeting small businesses (≤100 FTE employees) statewide. Loans are fixed-rate at 2% annually for up to 10 years with a $100,000 annual cap, funding up to 75% of eligible project costs for pollution prevention or energy efficiency; applicants must demonstrate payback within the loan term with benefits extending beyond. The two-step approval process routes technical eligibility through DEP's Small Business Ombudsman, then financial applications through CEDOs to DCED for final funding; eligible projects span lighting, HVAC, motors, chillers, and custom manufacturing/processing equipment that reduce material use, waste, or energy consumption.
Program details
- Program ID
- 1186
- Last updated
- 8/3/2025
Eligibility
- Sectors
- commercial industrial
- Technologies
- lighting chillers furnaces boilers heat pumps air conditioners motors processing and manufacturing equipment custom/others pending approval hvac
Program summary
The Pollution Prevention Assistance Account (PPAA) offers low-interest loans to help small businesses (100 full-time employees or less) located within the state implement energy efficiency and pollution prevention projects. Loans may be issued for 75% of project costs up to $100,000 within any 12-month period, with terms of up to 10 years. The program is only available to qualifying businesses that adopt or install pollution prevention or energy efficient equipment or processes that reduce or reuse raw materials on-site, reduce the production of waste, or significantly reduce energy consumption and are directly related to the business activity. Renewable energy systems are eligible for loans under this program if they meet the project eligibility criteria. A list of potentially eligible projects is provided in the program guidelines.
The program is administered by the PA Department of Environmental Protection and the PA Department of Community and Economic Development. In order to qualify, the project must have a payback that is less than or equal to the loan term, and the expected benefits must extend past the term of the loan. Applications are available at the program web site above. The program is also now a part of the Pennsylvania Industrial Development Authority (see full program guidelines).
Contact & resources
- Contact email
- gdelvecchi@pa.gov
Please verify current program details with the administering agency before making any financial decisions.
