The state estimates more than 330,000 septic systems are failing in Michigan. A new loan program aims to make it more affordable for residents to replace faulty systems.
Earlier this year, the state set aside $35 million for loans meant to address septic systems that could potentially be leaking sewage into lakes, rivers, and groundwater.
So far, 57 loans have been approved.
Nishaat Killeen is the program's manager with Michigan Saves, a nonprofit bank that oversees loan distribution. She said she believes the program can help "make a dent" in septic pollution.
"We'll see what the demand is, we don't have set target numbers for how many loans we anticipate closing each year, but this (57) is a number we're very happy with," Killeen said.
Income-based loans through the program range from $1,000 to $30,000 that can be paid over a 10 year period with a maximum 1% interest rate. A market-based loan ranges from $1,000 to $50,000 per project with credit-based underwriting.
"(A septic system) is an essential part of a well-functioning home," Killen said. "With our lower interest rates and terms that can stretch out for a number of years, we try to make that monthly payment low enough, where folks can hopefully still afford that expense."
Killeen said interested residents should reach out to their local health department for a permit and find an approved contractor in their area before applying for the loan.
Michigan is the only state that doesn’t have a uniform code for regulating septic systems, and past attempts to implement one have failed.
