Tourism Business Septic Tank Replacement


Our Tourism Business Septic Tank Replacement Program makes low-interest financing available to existing tourism-related businesses that provide overnight lodging and need to replace a failed septic system.

Participation loans in cooperation with financial institutions can be made for up to 50 percent of the total cost of the project.


Corporations, sole proprietorships or partnerships engaged in an existing tourism-related business that provide overnight lodging, including resorts, bed and breakfast inns, hotels, motels, ski lodges, campgrounds and recreational vehicle trailer parks are eligible.

Projects that replace an existing septic system that has failed are eligible.

However, project costs incurred more that 30 days before submission of a completed application are ineligible. Applications are not considered complete until DEED has approved the loan.

Terms and Interest Rates

Federal funds are used in conjunction with loaned funds from financial institutions. The maximum state loan may not exceed 50 percent of the total project costs or $65,000 whichever is less.

The interest rate for septic system replacement loans is fixed at 2.0 percent for a maximum of 10 years.

The interest rate for the banks’ share of the loan is negotiated between the bank and the borrower. All loans must be secured by collateral and personal guarantee.


Loan applications are reviewed and evaluated to determine eligibility, credit worthiness and a number of other factors. If the loan is approved, DEED enters into a loan participation agreement with the financial institution.

Contact Us

For more information, contact Bradley Simenson at (651) 259-7428 or toll-free at 1-800-657-3858.