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Farm, Construction Plastics Recycling in California Gets a Boost

Sacramento, CA - With a $400,000 business loan from the California Integrated Waste Management Board, Summit Sales of Merced County will increase its plastics manufacturing capability up to a projected 250 percent. The company is providing additional funding of its own to expand its pipe fabrication operations and keep more recyclable plastics out of local landfills.

Located in Gustine, Summit Sales, Inc. received the low-interest state loan through the Waste Board's Recycling Market Development Zone (RMDZ) program that promotes recycling-based business development. The Waste Board is the state's primary recycling agency and a part of the California Environmental Protection Agency.

"When a successful business venture can expand its operations and divert six times more recyclable plastic than it currently does from California's crowded landfills, that is an effort the state is pleased to help support," said Waste Board Chair Linda Moulton-Patterson. "On behalf of the board, I'd like to congratulate Summit Sales, Inc. for growing its business in a way that benefits California's environment and helps conserve a resource used to make new, highly marketable products."

The Waste Board's $400,000 business recycling loan is being applied toward the purchase of an existing 10,000-square-foot building on seven acres that Summit Sales is currently leasing. The loan proceeds will also help fund the purchase of two extrusion equipment machines. Total cost for the project is $639,300. The expansion will allow Summit Sales to increase product sales and product lines while diverting additional material from California landfills. Located in a large agricultural area zoned for industrial applications, the company has access to a substantial source of recyclable materials. Summit Sales currently employs 20 personnel and diverts 1,000 tons of recycled plastic per year. With the Waste Board loan and expansion, the company plans to create 12 new jobs and to divert an additional 5,000 tons of materials per year.

The Waste Board awards the low-interest RMDZ loans statewide to promote better recycling technologies and business development. The loans help create jobs and benefit the environment by keeping recyclable materials out of landfills.

The RMDZ program fosters manufacturing of new products from recycled feedstock materials, and also serves business projects designed to reduce the waste that results from manufacturing. The current fixed-rate on RMDZ loans is 5.7 percent. Loans are available to finance up to 75 percent of project costs, or a maximum of $2 million, whichever is less. RMDZ loans may be used as working capital or to acquire equipment, for making leasehold improvements, or to acquire commercial real estate.

Eligible loan applicants must be located within one of California's 40 Recycling Market Development Zones, geographic areas designated by the Waste Board and covering much of the state from the Oregon border to San Diego.

For more information about the RMDZ program and other assistance available to recycling-based businesses, visit their website at www.ciwmb.ca.gov/RMDZ.

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