Replacing, Removing, or Upgrading Underground Storage Tanks Loan Grant

The RUST loan program supports small businesses in California by financing up to 100% of costs for upgrading, removing, or replacing underground storage tanks. This initiative helps ensure compliance with federal and state regulations, including necessary corrective actions. Low-interest loans range from $10,000 to $750,000, with flexible terms of 10 or 20 years, aiding businesses in meeting health and safety standards while promoting environmental responsibility.

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.

Eligibility

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 tanks owned and operated by the loan applicant, with the exception of the project tanks, must be in compliance with Health and Safety Code chapter 6.7 (commencing with section 25280), section 41954, and implementing regulations;The project tanks must be in compliance, or will be in compliance, after the completion of the project with Health and Safety Code chapter 6.7 (commencing with section 25280), section 41954, and implementing regulations;The loan applicant must be in compliance with the financial responsibility requirements specified in Health and Safety Code sections 25292.2 and 25299.31 and with subchapter IX (commencing with section 6991) of chapter 82 of title 42 of the United States Code and regulations implementing that subchapter; andThe 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.