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For Immediate Release (C-31-96)
Contact: Communications Office (916) 324-9670
September 24, 1996

555 Capitol Mall, Suite 525
Sacramento, CA 95814
(916) 324-9670
FAX (916) 445-5563

SACRAMENTO--Governor Pete Wilson last Friday signed Senate Bill 1535 (Killea),which extends Cal/EPA's Integrated Waste Management Board (IWMB) Recycling Market Development Zone (RMDZ) loan program into the 21st Century.

"This nationally-recognized program has already helped more than 50 recycling businesses improve California's environment," said California Secretary for Environmental Protection James M. Strock.  "Governor Wilson's extension of the program will help establish strong markets for the millions of tons of materials that are diverted from our landfills each year."

This direct lending program has lent 54 recycling-based businesses more than $21 million, helping them to expand or open new manufacturing operations that each year are diverting nearly 1.5 million tons of waste from the California's landfills. 

Developing these markets is essential to help California reach its goal of diverting 50 percent of its waste from landfills by 2000.

"On top of the obvious benefits to the environment through the increased development of markets for recyclables, this loan program will continue to benefit local economies throughout California," Secretary Strock said.  "In fact, since the program began in 1990, these loans have helped businesses generate more than 640 new jobs and have stimulated the market for recyclable materials."

SB 1535 will extend for 10 years a program which annually allocates $5 million in loan funds for invest in the recycling industry.  On top of that, the IWMB has an additional $4.7 million available from an earlier transaction where 17 of its existing loans were sold to Minneapolis-based Community Reinvestment Fund (CRF).  The purchase by CRF "recycled" the loan dollars, allowing IWMB to re-lend the proceeds to other businesses.

"Given private lending institutions reluctance to provide credit to new recycling-based manufacturers, it is important that IWMB continue this innovative program which helps provides businesses with the capital needed to succeed in improving the environment and meeting our state goals," Secretary Strock said.

Businesses participating in the RMDZ loan program must be located in one of the State's 40 RMDZs, which range from small business parks to the Central Coast RMDZ --which encompasses four counties.  These zones help local governments establish markets for materials being diverted from landfills.

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