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1 State of Arkansas As Engrossed: H4/1/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 SENATE BILL 367
4
5 By: Senator Irvin
6 By: Representative Gramlich
7
8 For An Act To Be Entitled
9 AN ACT TO REPEAL THE SMALL BUSINESS REVOLVING LOAN
10 FUND FOR POLLUTION CONTROL AND PREVENTION
11 TECHNOLOGIES ACT; TO REPEAL THE SMALL BUSINESS
12 REVOLVING LOAN FUND; AND FOR OTHER PURPOSES.
13
14
15 Subtitle
16 TO REPEAL THE SMALL BUSINESS REVOLVING
17 LOAN FUND FOR POLLUTION CONTROL AND
18 PREVENTION TECHNOLOGIES ACT; AND TO
19 REPEAL THE SMALL BUSINESS REVOLVING LOAN
20 FUND.
21
22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
23
24 SECTION 1. Arkansas Code Title 8, Chapter 5, Subchapter 8, is
25 repealed.
26 Subchapter 8 -- Small Business Revolving Loan Fund for Pollution Control and
27 Prevention Technologies Act
28
29 8-5-801. Title.
30 This subchapter may be called the "Small Business Revolving Loan Fund
31 for Pollution Control and Prevention Technologies Act".
32
33 8-5-802. Purpose.
34 It is the purpose of this subchapter to authorize the Division of
35 Environmental Quality to establish and administer a revolving loan fund to
36 encourage the investment in pollution control and prevention technologies in
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1 Arkansas. The fund will promote sustainable economic development in Arkansas
2 by establishing a publicly capitalized fund to make loans to small businesses
3 for projects to meet regulatory mandates in pollution control, to adopt
4 pollution prevention technologies, or to implement waste reduction practices.
5
6 8-5-803. Definitions.
7 As used in this subchapter:
8 (1) "Applicant" means any business concern operating within the
9 State of Arkansas that meets the criteria of a person, corporation,
10 partnership, or other business organization;
11 (2) "Commission" means the Arkansas Pollution Control and
12 Ecology Commission;
13 (3)(A) "Pollution prevention" means reducing or eliminating the
14 generation of pollutants and waste at the source.
15 (B) "Pollution prevention" includes:
16 (i) Process modifications and equipment acquisitions
17 that promote the recovery and reuse of pollutants; and
18 (ii) The acquisition and installation of capital
19 equipment, a process change, or a combination of capital equipment and
20 process change.
21 (C) "Pollution prevention" does not include investments in
22 waste treatment processes or equipment, unless the waste treatment involves
23 the recovery and reuse of pollutants; and
24 (4)(A) "Waste reduction" means handling or processing waste
25 materials in a way that ultimately reduces the total quantity of waste
26 disposed.
27 (B) "Waste reduction" includes process modifications and
28 equipment acquisitions that promote the recovery, reuse, or recycling of
29 pollutants and wastes.
30
31 8-5-804. Eligible activities.
32 (a) Moneys deposited into the Small Business Revolving Loan Fund
33 within the Division of Environmental Quality may be:
34 (1) Loaned to eligible participants to pay the direct costs of
35 projects which are designed to correct or avoid violations of federal
36 environmental regulations or state environmental rules and have received a
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1 certificate of need from the division; or
2 (2) Expended to pay costs incurred by the division to provide
3 management of lending activities.
4 (b)(1) It is the purpose of this subchapter to authorize the division
5 to establish and administer a revolving loan fund to encourage the investment
6 in pollution control, pollution prevention, and waste reduction practices in
7 Arkansas.
8 (2) Such a fund will promote sustainable economic development in
9 Arkansas by establishing a publicly capitalized revolving loan fund to make
10 loans to small businesses for projects to meet regulatory mandates in
11 pollution control or to adopt pollution prevention technologies.
12 (3) Operating expenses associated with proofing a process change
13 or equipment modification would be an eligible loan activity.
14
15 8-5-805. Eligible applicants.
16 (a) An eligible applicant shall:
17 (1) Employ one hundred (100) or fewer individuals, including
18 both full-time and part-time employees, through direct hiring or contract,
19 including affiliates and subsidiaries, at the time an application for a loan
20 is received by the Division of Environmental Quality;
21 (2) Provide proof of profitable operations and a demonstrated
22 ability to repay the loan; and
23 (3) Submit an application supplied by the division including any
24 supporting documents, instruments, or other documents requested by the
25 division for the purposes of recommending approval or disapproval of a loan
26 described in this section.
27 (b)(1) Until all delinquent fees stated in this subsection or
28 otherwise owed to the division are paid in full and no balance is due, the
29 Director of the Division of Environmental Quality shall not approve any loan
30 application.
31 (2) The delinquent fees include, but are not limited to:
32 (A) Permit fees;
33 (B) Permit modification fees;
34 (C) License fees;
35 (D) Certification fees;
36 (E) Registration fees;
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1 (F) Variance application fees;
2 (G) Civil penalties;
3 (H) Emergency response reimbursements;
4 (I) Loan payments; and
5 (J) Review fees.
6
7 8-5-806. Terms of the revolving loan.
8 (a)(1) The maximum loan amount shall be:
9 (A) Forty-five thousand dollars ($45,000) per mandated
10 pollution control project;
11 (B) Forty-five thousand dollars ($45,000) per pollution
12 prevention project; and
13 (C) Forty-five thousand dollars ($45,000) per waste
14 reduction project.
15 (2) The maximum allowable amount to be loaned shall not exceed
16 sixty-five thousand dollars ($65,000) per individual applicant.
17 (b) The maximum term of the loan shall be ten (10) years per mandated
18 pollution control project and ten (10) years per pollution prevention or
19 waste reduction project.
20 (c) The interest rate shall be:
21 (1) Established by the Division of Environmental Quality at or
22 below market rate; and
23 (2) Fixed for the term of each loan at the rate that is in
24 effect when the loan application is received or when the loan is closed,
25 whichever is lower.
26 (d)(1) The borrower shall be required to make level monthly amortizing
27 payments to retire the debt by the end of the loan term.
28 (2) Loan principal may be repaid in part or in full at any time
29 without penalty.
30 (e)(1) The division may:
31 (A) Make secured or unsecured loans with a promissory
32 note;
33 (B) Collect interest on any loans issued; and
34 (C) Assess penalties on late loan payments.
35 (2) Loans issued under this subchapter may contain an
36 acceleration clause.
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1 (f) The division may bring any lawful action to recover any loan that
2 is in default.
3
4 8-5-807. Small Business Revolving Loan Fund.
5 (a) There is created within the Division of Environmental Quality a
6 revolving loan fund:
7 (1) Which shall be designated the "Small Business Revolving Loan
8 Fund";
9 (2) Into which shall be transferred or deposited the moneys to
10 be provided by law for the Small Business Revolving Loan Fund; and
11 (3) To be used as a revolving fund by the division for making
12 loans to eligible participants to pay the direct costs of projects that are
13 designed to correct or avoid violations of federal environmental law or
14 regulation or state environmental rules and have received a certificate of
15 need from the division or to pay costs incurred by the division to provide
16 management of lending activities.
17 (b)(1) There is established on the books of the Treasurer of State,
18 the Auditor of State, and the Chief Fiscal Officer of the State a fund to be
19 known as the "Small Business Revolving Loan Fund".
20 (2) The Small Business Revolving Loan Fund shall consist of the
21 following:
22 (A) All funds transferred from the General Improvement
23 Fund or its successor fund or fund accounts, including the Development and
24 Enhancement Fund, to be otherwise provided by law for the Small Business
25 Revolving Loan Fund;
26 (B) All moneys received by the division upon repayment of
27 loans made from the furnishing of funds for loans under the program created
28 by this subchapter;
29 (C) Interest earned upon any money in the Small Business
30 Revolving Loan Fund; and
31 (D) All sums recovered upon by the Small Business
32 Revolving Loan Fund for losses to the Small Business Revolving Loan Fund or
33 for loan losses under the loan program created in this subchapter and all
34 other moneys received for the Small Business Revolving Loan Fund from any
35 source.
36 (c)(1) Subject to the provisions of this subchapter, the division is
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1 vested with full power, authority, and jurisdiction over the Small Business
2 Revolving Loan Fund, including all moneys and property or securities
3 belonging to the Small Business Revolving Loan Fund.
4 (2) The division may invest the Small Business Revolving Loan
5 Fund in direct general obligations of the United States, in certificates of
6 deposit or savings accounts in an amount not to exceed the capital funds,
7 represented by capital, surplus, and undivided profits in financial
8 institutions located in Arkansas that are insured by an agency of the United
9 States Government, and in repurchase agreements that are collateralized by
10 direct general obligations of the United States or by bonds, notes,
11 debentures, participation certificates, or other obligations issued by an
12 agency of the United States, the principal and interest of which are
13 guaranteed by the agency or the United States.
14
15 8-5-808. Administration of program.
16 The Division of Environmental Quality will manage the program through
17 its Small Business Assistance Program. The program is authorized to delegate
18 the management of the Small Business Revolving Loan Fund. The division shall
19 retain the power to issue certificates of need for eligible projects and
20 shall not delegate such authority.
21
22 SECTION 2. Arkansas Code � 19-5-1105 is repealed.
23 19-5-1105. Small Business Revolving Loan Fund.
24 (a) There is established on the books of the Treasurer of State, the
25 Auditor of State, and the Chief Fiscal Officer of the State a fund to be
26 known as the "Small Business Revolving Loan Fund".
27 (b)(1) The Small Business Revolving Loan Fund shall consist of moneys
28 transferred from the General Improvement Fund or its successor fund or fund
29 accounts, including the Development and Enhancement Fund, interest earnings,
30 repayment of loans, and moneys recovered for loan losses under the loan
31 program created in the Small Business Revolving Loan Fund for Pollution
32 Control and Prevention Technologies Act, � 8-5-801 et seq., and any other
33 moneys made available by law or from any other source.
34 (2) The Small Business Revolving Loan Fund shall be administered
35 by the Division of Environmental Quality and used exclusively for those
36 purposes set out in the Small Business Revolving Loan Fund for Pollution
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1 Control and Prevention Technologies Act, � 8-5-801 et seq.
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7 04-01-2025 14:18:56 JMB238Every fact on this page links to its source, starting with the official bill record.