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Recycling Market Development Zone (RMDZ)

California’s 30 million residents generate 44 million tons of waste each year. Decreasing landfill capacity has forced communities like Santa Clarita to reconsider what they do with their trash. Recycling has diverted waste from landfills at increasing quantities. As the ability to recycle increases, new opportunities/markets for recycled materials are developed. The Recycling Market Development Zone (RMDZ) program is one fundamental step to creating these markets.

Manufacturing products with recycled feedstock can decrease production costs and bring higher profits.The RMDZ program provides:

  • Attractive loans
  • Technical assistance
  • Free product marketing

What is the purpose of the RMDZ?

Starting or running a business using recycled-content materials can be a challenging proposition, but can be very successful. The RMDZ program was created to provide low-interest loans to eligible businesses using secondary (post consumer or post industrial) waste materials to manufacture new products or that reduce the waste resulting from the manufacturing of a product.

Who is eligible?

Businesses eligible for the RMDZ program include private companies or nonprofit organizations located in the City of Santa Clarita that:

  • Manufacture a product out of recycled materials,
  • Process recyclables in such a way that their market value is increased,
  • Repair items that would otherwise become waste, or
  • Make products using less materials or while generating less waste.

How much money is available?

The RMDZ program can fund a maximum of 75 percent of costs directly attributed to an eligible project, up to a maximum of $2 million dollars, whichever is less.

What can the RMDZ loan dollars be used for?

  • Machinery and equipment
  • Working capital
  • Real estate purchase (limit of $1 million)
  • Real estate improvements
  • Refinancing of onerous debt (debt with high interest rates and/or short terms) that jeopardizes and causes a negative impact on the borrowers cash flow
  • Loan closing points

For more information on this program, please contact the City’s Economic Development Division at (661) 255-4347 or Environmental Services Division at (661) 286-4098.

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