The Cafeteria Plan of Financial Assistance for Small Businesses is being developed by the National Small Business Financial Assistance Work Group (NSBFAWG) to serve as a working reference for federal, state, and local agencies who provide, or who are interested in providing, financial assistance to small businesses for environmental projects. The Cafeteria Plan was conceptualized through contacts with differing financial assistance programs, and implemented as a means and an opportunity to share this information nationwide. The intent is to give agencies detailed information about the various choices available to them when considering financial assistance for businesses within their jurisdictions. The title "Cafeteria Plan" was chosen to connote the concept of enabling agencies to select the type of financial assistance program that would best suit the particular needs of the agency, and their small business community.

The Cafeteria Plan’s niche within the realm of environmental compliance/performance is being loosely viewed as follows; education first, then technical assistance, then financial assistance, and finally, and only when necessary, enforcement actions.

Education would include outreach programs to reach a broad audience and more specifically targeted outreach for specific audiences.

Technical assistance would be designed for both a given type of business, and then more specifically designed for individual businesses.

Financial assistance programs could include:

Loans from financial institutions, with criteria including:

• Fixed interest and fees;
• Interest assistance from the government agency involved;
• Tax exemptions (like those granted in OH);
• Size limits for businesses obtaining loans.

Loans from government agencies, with criteria including:

• Fixed interest;
• Tax exemptions (like those granted in OH);
• Size limits for businesses obtaining loans;
• Payments, principal and interest, return to loan fund for future use (as in MN).

Grants, with criteria including:

• Limits on amounts of grants;
• Size limits for businesses obtaining loans.

Bill or fee reductions, with criteria including:

• Criteria set by agency for participation, and inspections;
• Structured reductions, certain reductions for specified actions taken by the businesses.

Cash reimbursements, with criteria including:

• Size limits for businesses obtaining loans;
• Criteria set by agency for participation, and inspections;
• Limits on amounts of reimbursements;
• Matching funds;
• Greater amounts of reimbursement for greater efforts.

Below are some examples of programs that have already contributed to the Cafeteria Plan. The NSBFAWG’s ongoing goal is to centrally archive this information to serve as a standing online working reference for financial assistance providers.

State of Ohio, Clean Air Resource Center

Ohio offers a tax exemption plan for purchases made under their Small Business Assistance Program (SBAP) loans, and tax exemption on the interest collected by the financial institutions making the loans.

Small Business Ombudsman, Minnesota Pollution Control Agency

The Minnesota Pollution Control Agency’s Small Business Environmental Improvement Loan Program offers low-interest loans to small businesses for new equipment purchases that meet or exceed environmental regulations, and for site investigation and cleanup projects. Loan amounts range from $1,000 to $50,000 with terms up to seven years. Interest rates are one-half the prime rate, or four percent, whichever is higher at the time the loan is awarded. The program was originally funded through a legislative appropriation. It currently operates as a revolving loan account.

West Virginia Office of Air Quality

West Virginia provides a low-interest revolving loan program, with loans made for environmental improvements, pollution prevention, recycling, or waste reduction. Loans are only provided to small businesses, with fewer than 50 employees. Amounts loaned range between $5,000 and $150,000, with the interest fixed at half of the prime rate but not less than 4%. Collateral and down payments are required. This program is based on Senate Bill 96.

Pennsylvania Department of Environmental Protection

This revolving loan program makes loans to businesses with fewer than 100 employees, for pollution prevention (P2) or energy conservation. New legislation is under consideration to create a "micro loan" program for start-ups, where no collateral is required, only 2% interest, and fees are limited to 1%, with seven- year terms, capped at $50,000 or 75% of total project cost. The loan fund has been allotted $2 million per year for five years.