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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.

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