P2 Financing

Pollution Prevention (P2) projects often have costs (e.g., new equipment, contractor services) that require cash disbursements upfront, with potential savings (avoided costs) accruing over time. For small and medium-sized enterprises (SMEs), these projects must often compete for limited resources with other internal business priorities that are essential for revenue generation. Small businesses may not be used to borrowing money from external sources or may not realize that it’s possible to do so at affordable terms.

Some lenders can make loans for P2 investment more accessible to SMEs by using a variety of techniques to lower or spread financial risk thereby reducing the borrower’s cost of financing (e.g.,  lower interest rates and/or longer payback periods to decrease regular loan payments). P2 financing tools can make small business loans more attractive to lenders. Small businesses can contact their lenders and state P2 programs for more information on options for financing P2 projects.

This U.S. EPA webpage includes tips for securing financing for P2 projects.

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