The state estimates that more than 330,000 septic tanks are failing in Michigan, and a new loan program is designed to make it easier for residents to replace broken systems.
Earlier this year, the state allocated $35 million in loans to repair septic tanks that could leak wastewater into lakes, rivers and groundwater.
So far, 57 loans have been approved.
Nishaat Killeen, a program manager at Michigan Saves, a nonprofit bank that oversees the lending, believes the program can help “take a little bit of a hit” on sewer pollution.
“We'll see what the demand is like. We haven't set any target numbers for how many loans we expect to close per year, but we're very happy with this number (57),” Killeen said.
Income-based loans under the program range from $1,000 to $30,000 and can be repaid over 10 years with a maximum interest rate of 1%. A market-based loan ranges from $1,000 to $50,000 per project with credit-based lending.
“(A septic system) is an essential part of a well-functioning home,” Killen said. “With our lower interest rates and terms that can stretch over multiple years, we try to keep the monthly payment low enough that people can hopefully still afford that expense.”
Killeen said interested residents should contact their local health department for approval before applying for the loan and find a licensed builder in their area.
Michigan is the only state that does not have uniform regulations regulating septic tanks, and previous attempts to introduce them have failed.
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