RUST grants and loans are available to assist small business Underground Storage Tank (UST) owners and operators to come into compliance with UST regulatory requirements by removing, replacing, or upgrading USTs.
This is not a reimbursement program. Work cannot begin until you have a signed agreement with the State Water Board.
Typical eligible costs are removing and replacing single-walled USTs and/or piping with double-walled USTs and/or piping, UST upgrades including installing containment sumps, under-dispenser containment boxes/pans, and electronic monitoring systems, and conducting enhanced leak detection tests.
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 and 25292.4
- Loans from $10,000 to $750,000
- The loan term is ten years when secured by Uniform Commercial Code Financing Statement on business assets.
- The loan term is twenty years when the loan is secured by a deed of trust on real estate with adequate equity.
- Interest Rate and Fees: The interest rate on RUST loans is below conventional market rates.
- A loan fee of 2 percent must be paid at final loan closing.
- Grants range from $3,000 to $70,000
- An additional $140,000 in RUST grant money is available for remote and public fueling stations for the purpose of removing and replacing single-walled UST.