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Recycling Market Development Zone

RMDZ Banner
The Recycling Market Development Zone (RMDZ) program provides low interest loans and assistance to businesses that prevent, reduce, reuse or recycle waste materials through manufacturing or another value-added process.

Low Interest Loan Program

Overview of the loan program:
  • Loan amount is a maximum of 75% of project costs or up to $2 million.
  • Interest rates are fixed for the term of the loan at 4.0%.
  • Loan term is a maximum of 10 years, or 15 if secured by commercial real estate.
  • Matching funds of at least 25% of the loan and collateral are required.
  • Applications are individually evaluated by CalRecycle.
RMDZ Loan Funds may be used for the following:
  • Purchase of machinery and equipment
  • Working capital
  • Real estate purchase (maximum of $1 million)
  • Real estate improvements
  • Refinancing of onerous debt that results in increased waste diversion
  • Loan-closing points
cardboard flattened for recycling

Business Assistance Program

RMDZ Loan Program is more than a loan program. Businesses receive technical assistance even if they do not apply for or receive an RMDZ loan. In addition to the loan, the RMDZ program can provide information about the following to eligible businesses:
  • RMDZ Program Overview and Services
  • Financial Incentives Programs (grants or loans)
  • Tax Incentives
  • Permitting Referrals
  • Siting Opportunities
  • Locating Feedstock Sources
  • Marketing and Networking
  • Connecting to Mayor’s Office of Economic Development
Man with protective face covering working with machinery

ELIGIBILITY

In order to be eligible for the RMDZ program, a business must accomplish the following:

  • Located and manufactures its products in Los Angeles, and
  • Manufactures products using recycled material generated in California, or
  • Processes California waste into a usable feedstock, or
  • Reduces waste in the manufacturing process.
For more details regarding eligibility, please see the ELIGIBLE PROJECTS tab below.


LOAN OVERVIEW

The RMDZ loan can fund a maximum of 75% of project costs or up to $2 million.

  • Interest rates are fixed for the term of the loan; currently at 4.0%.
  • The term of the loan is not to exceed 10 years when secured by business assets, or 15 years if secured by commercial real estate.
  • Matching funds of at least 25% of the total project are required.
  • Collateral is required.
  • Applications are individually evaluated by CalRecycle after businesses are vetted by City of LA Zone Administrators.


FUND USE

RMDZ Loan Funds may be used for the following:

  • Purchase of machinery and equipment
  • Working capital
  • Real estate purchase (maximum of $1 million)
  • Real estate improvements
  • Refinancing of onerous debt that results in increased waste diversion
  • Loan-closing points
RMDZ Feedstock CalRecycle

In addition to being located within the City of Los Angeles, applicants must also participate in one of the following project categories in order to be eligible for the RMDZ Loan Program: Waste Prevention; Reuse; or Recycling, Composting, and In-Vessel Digestion. A wide variety of projects are eligible. If you have a waste reducing project or business model, contact us to discuss your eligibility.

WASTE PREVENTION

Waste prevention projects alter a production process, reducing the amount of feedstock used, waste generated, or packaging required. This may be accomplished by modifying equipment or processes, improving operations and maintenance, or changing materials in manufacturing. 


REUSE

Reuse projects extend the useful life of a product for its originally intended use or a similar purpose by delaying disposal or recycling through repairing, repurposing, washing, or treating a used product.


RECYCLING, COMPOSTING, AND IN-VESSEL DIGESTION

Projects in this category use a non-hazardous solid waste or recycled material to produce either a recycled content intermediate feedstock material or a recycled content finished product (compost; mulch; recycled content paper, plastic, or glass products, etc.)