How May I Use Funds?
Loan proceeds may be used for property acquisition, construction or renovation, equipment/machinery purchases, and tenant improvements. Funds can also be used for financing loan points and fees.
Loans to local governments can only be used for publicly owned infrastructure and capital improvements that directly support eligible businesses within the RMDZ.
How Much Can I Borrow?
Applicants may receive up to 75 percent of the cost of the project, for a maximum loan amount of $2 million.
Who is Eligible?
To be eligible, the businesses must use post-consumer or secondary waste materials to manufacture a new product or a value-added product; reduce the amount of solid waste generated in the production of a product; or promote the reuse of a product by reconditioning or restoring it to a reusable form. The business must also be located in a designated RMDZ.
What is the Interest Rate?
The current interest rate is 5.20 percent (until January 31, 2008) and is fixed for the term of the loan. The interest rate is subject to change and is set by the CIWMB semi-annually.
What is the Loan Fee?
A non-refundable application fee of $300 is due at the time of application submittal. A loan origination fee of one-half percentage points will be charged on each loan. Points are due at the time of closing.
What are the Loan Terms?
The term of the loan is not to exceed ten years (15 years if secured by real estate).
Is Collateral Required?
Collateral is required.
How Can I Apply?
To request a RMDZ loan application, please contact the CIWMB through e-mail or at (916) 341-6530.
Sponsored by the County of Los Angeles