Troy Cleaners of Flint is the first dry-cleaning business to have a pollution prevention project approved under the Department of Environmental Quality’s new Small Business Pollution Prevention Loan Program.

The program is part of the Clean Michigan Initiative, a $675 million environmental bond proposed by Gov. John Engler and overwhelmingly approved by voters in 1998. The program provides low-interest loans to small businesses with fewer than 100 employees to encourage the implementation of projects that eliminate or reduce waste through source reduction or recycling.

DEQ Director Russell Harding’s approval of the project clears the way for finalizing a $100,000 loan to Troy Cleaners. The business will buy two dry-cleaning machines that will reduce the amount of annual perchloroethylene usage by nearly 50 percent. In addition, the loan proceeds will be used to purchase a more energy-efficient garment utility press, and to install a 12-ton water tower for water conservation purposes.

"This is precisely the type of business that should take advantage of the Small Business Pollution Prevention Program," Harding said. "The potential hazards posed by these cleaning solvents makes this program an important tool in reducing the daily environmental risk faced by dry cleaners."

Under the program, the DEQ works in partnership with the company and its local bank to provide a loan that does not exceed the 5-percent interest rate established in the state statute creating this program. In this instance, Citizens Bank of Fenton is participating in the loan with the DEQ. Upon completing the loan documents, the bank will issue the $100,000 low-interest loan.

"We’re excited at the opportunity to participate in this loan program to create a healthier working environment for our employees," said Lou Dortch Jr., vice president of Troy Cleaners. "Saving over $17,000 in interest costs means we’ll have more money to reinvest in the business."

Eligible projects must reduce waste at the point of generation, or reuse or recycle materials. The program is based on a match partnership where the loan is split between participating lending institutions and the DEQ CMI fund.

Loans up to $100,000 are available to all private business sectors including manufacturing, farming, retail and service. The program is administered by the DEQ’s Environmental Assistance Division.

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