The Weekly Briefing
A READER WRITE-IN Q & A; WITH RESPONSES FROM BRUCE DOBB
Q We haul away and dispose of waste from the entertainment industry. Many of these items can be recycled into industrial and/or consumer products but I need financing to build that end of my business. Do you know where I can look?
David Isaac, President, Re-Sets Entertainment Commodities Inc.
A The California State Integrated Waste Management Board offers eligible business loans up to $1 million at a fixed, below-market rate of interest for up to 10 years. Loan proceeds can be used to purchase real estate and equipment, for debt restructuring or working capital. These loans must be matched with other financing and be part of an overall project that will result in a reduction of solid waste and the creation of jobs.
To be eligible, a business must:
- be located or willing to locate in one of 40 designated Recycling Market Development Zones there are zones in Long Beach and Ventura County, and the entire city of Los Angeles has been designated a zone;
- recycle secondary waste materials (that would otherwise end up in landfills) in a manufacturing process;
- have 50 percent of the total project cost come from other sources (banks, equity or other financing providers).
Loan applications are accepted on an ongoing basis and are submitted for approval by a Loan Committee of the Board on a quarterly basis.
For application information and further assistance, contact Bob Caputi at (916) 255-2442.
The goal of this program, called the Recycling Market Development Zone Loan Program, is to divert 15 million tons of post-consumer waste from landfills to recyclable products and create 50,000 jobs in the process.
The State of California is mandated to achieve a 50-percent reduction in waste disposal by the year 2000. Right now, 45 million tons of solid waste is generated in California each year.
The Waste Management Board announced three loans in Southern California this spring. The first was to M. Maintenance Construct Clean-Up Co. in Ventura County. This company recycles construction and demolition waste materials so they can be re-used.
A second company, Industrial Tire Service in Long Beach, will expand its recapping and retreading services by purchasing a larger building and more equipment.
The third is Coast Converters Inc., located in the Los Angeles Empowerment Zone. It manufacturers plastic bags and will use the loan to increase the post-consumer recycled content of the bags.
Got a question?
Please write to Editor, The Weekly Briefing, Los Angeles Business Journal, 5700 Wilshire Blvd., Suite 170, Los Angeles, CA 90036. Bruce Dobb is the chief credit officer for the Valley Economic Development Center's revolving loan fund. His column appears alternate weeks.
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