Program News...
  • Available Funds:
    • FY 2019-20 $6,250,000.  
  • Interest Rate: 4.0 percent

The Department of Resources Recycling and Recovery (CalRecycle) administers a Recycling Market Development Zone Loan Program to encourage California-based recycling businesses located within California financing businesses that prevent, reduce, or recycle recovered waste materials through value-added processing or manufacturing.  Facilities must be located within a CalRecycle-designated RMDZ and use postconsumer or secondary recovered waste feedstock generated in California.

The purpose and importance of the RMDZ Program is set forth in Section 42001 of the California Public Resources Code: 

“The purpose of this chapter [is] to stimulate the use of postconsumer waste materials and secondary waste materials generated in California as raw materials used as feedstock by private business, industry, and commerce.”

Additional background and legal information on the RMDZ Loan Program is available on our RMDZ Law and Policy page.

Eligible Applicants

  • Private, for-profit entities
  • Nonprofit organizations (except private schools)
  • Local government entities
    • Cities, counties, and cities and counties
    • Regional or local sanitation agencies, waste agencies, and joint powers authority

All projects must be located in a CalRecycle designated RMDZ, which can be determined by entering the project physical address into the RMDZ Zone Search, Map, and Profiles. In the case of mobile operations, the primary business location for the project must be located within the RMDZ.

Funding

  • $2,000,000 or 75 percent of total project cost, whichever is less.
  • A borrower and its related entities may receive more than one RMDZ loan, but may not have more than $3,000,000 principal outstanding on all RMDZ loans.
  • Term is up to 10 years when secured by business assets or up to 15 years when secured by real estate.
  • Matching funds of at least 25 percent of the total project are required.  Matching funds can include, but are not limited, to cash, grants, or loans.  The following may not be used as matching funds: collateral, personal property, intangible items, i.e., patents, IOUs.
  • Collateral is required. Collateral may include equipment, inventory, accounts receivable, real estate (typically excluding personal residences, vehicles, retirement accounts, foreign accounts receivable, and liquid assets).

For more information about the RMDZ Loan Program, including eligible/ineligible project types, download the RMDZ Eligibility Criteria.

Application

To view the application materials go to the program's Forms and Documents page. Before applying for a Loan please contact CalRecycle (see Questions below).

Loan Recipients

Learn more about loans that have been awarded.

  • Loan Award Information: Charts displaying data on number of loans awarded, amounts, and how funds were used.
  • Loan Recipient Search: Search for loan recipients by business name, zone, county, product category, feedstock category, loan type, and/or year.

Questions

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