The Recycling Market Development Zone (RMDZ) revolving loan program provides direct loans to businesses that use post-consumer or secondary waste materials to manufacture new products, or that undertake projects to reduce the waste resulting from the manufacture of a product.

To be eligible, the business must be located in a designated RMDZ such as the Kern County/Lancaster Zone and must divert waste from local landfills.

Each eligible business may borrow up to 75 percent of the cost of a project, for a maximum loan of $2 million.

The term of the loan is not to exceed 10 years (15 years if secured by real estate) and amortization schedules are based on the useful life of the asset being financed.

Interest rates are fixed for the term of the loan and are set by the California Integrated Waste Management Board semiannually.

A nonrefundable application fee of $300 is due at the time of application submittal. A loan origination fee of one-half percentage point will be charged on each loan. Points are due at the time of closing. The points are an eligible loan expense.

For more information, contact the California Integrated Waste Management Board at 916/341-6530.

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