Need New Equipment? This Zero Percent Interest Loan Could Help

Running a repair shop isn’t easy. Between managing workflow, keeping customers happy and staying on top of regulations, it can feel like there’s never enough time or money to invest in upgrades.

That’s why the Minnesota Pollution Control Agency (MPCA) is offering something worth your attention: the Small Business Environmental Improvement Loan Program.

This zero-interest loan program is designed to help small businesses, like yours, make environmentally friendly improvements. Whether it’s upgrading to a high efficiency spray booth or switching from solvent-based paints to waterborne systems to reduce emissions, these loans are meant to make your shop cleaner, safer, more efficient and overall compliant with environmental regulations.

Here’s the best part, this loan is interest-free, and repayment terms can stretch up to seven years. The program can fund up to $75,000 for projects that reduce air pollution, hazardous waste or other environmental risks. 

What qualifies as a “small business”? Most independent auto repair shops do. If you have fewer than 100 employees and are working on fixes that benefit both your business and the environment, chances are you’re eligible.

Various auto body shops across Minnesota have already used the program to replace outdated equipment, improve energy efficiency and meet regulatory requirements without draining their savings.

To apply, you’ll need to put together a project plan and show how the improvements will reduce environmental impact and demonstrate your ability to repay the loan. The MPCA Small Business Environmental Assistance Program is available to help walk you through the process.

In a time when every dollar counts, programs like this can make a real difference. If you’ve been putting off equipment upgrades or facility improvements, this could be an opportunity to finally move forward.

For more information or questions, email smallbizfunding.pca@state.mn.us or Emery David, Jr. at emery.david@state.mn.us or at (651) 757-2366.

Want more? Check out the November 2025 issue of AASP-MN News!