CalRecycle’s Market Development Zone (RMDZ) program combines recycling with economic development to fuel new businesses, expand existing ones, create jobs, and divert waste from landfills. This program provides attractive loans, technical assistance and free product marketing to businesses that use materials from the waste stream for their manufacturing. To participate, a business must be located in a RMDZ Zone. All of Madera County is a RMDZ zone so businesses within the county automatically are given the opportunity to benefit from the RMDZ program.
RMDZ Revolving Loan Program
The Recycling Market Development Zone (RMDZ) Revolving Loan Program provides direct loans to eligible businesses and nonprofit organizations that manufacture recycled raw material, produce new recycled products, or reduce the waste resulting from the manufacture of a product. These Loans promote market development for post-consumer and secondary waste materials. The loan funds can be used to purchase machinery and equipment, purchase real estate, perform real estate improvements, refinance onerous debt that results in increased diversion, for working capital, and to finance the loan-closing fee.
Rates, Terms and Fees:
Each eligible business may borrow up to 75% 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. The interest rate is equal to the State's Surplus Money Investment Fund (SMIF) rate, but no less than 4.00%. The cost of loan closing points shall be 1/2 percent, collected at the time loan funds are disbursed into escrow. RMDZ loan proceeds may be used to pay the points.
For more information, visit www.calrecycle.ca.gov/rmdz/loans/