Recycling Market Development Zone

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.

City of Los Angeles Recycling Market Development Zone

The RMDZ Loan Program is administered by the California State Department of Resources Recycling and Recovery (CalRecycle). By establishing zones throughout the state, the RMDZ Loan Program helps divert waste from landfills and stimulate local markets for recycling and recycled products. The City of Los Angeles was established as a zone in 1993.

In an effort to further reduce solid waste disposal, Los Angeles has set its own goal of achieving 90% Zero Waste by 2025. The Recycling Market Development Zone (RMDZ) program combines recycling with economic development to fuel new businesses, expand existing ones, create jobs, and divert waste from landfills. These aspects of the program help California meet the solid waste reduction goals established by the California state laws AB 939, AB 341, AB 1826, and SB 1383.

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

The 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