California Code of Regulations › Title 14 - Natural Resources › Division 7 - Department of Resources Recycling and Recovery › Chapter 4 - Resource Conservation Programs › Article 1.1 - Recycling Market Development Revolving Loan Program › Section 17935.1 - Application Content

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  All Applicants must apply in writing for a loan. The Board may make a loan
				  application form available to assist applicants in applying for a loan. A
				  complete application may consist of a written request containing the following
				  items:
(1) Characteristics of the business
				  shall include the applicant legal name, physical address, mailing address,
				  contact person's name and phone number, copy of business organizational
				  documents, copies of business licenses and permits, business plan, key
				  ownership and management resumes, list of all owners with percentage owned and
				  titles, authorizations to obtain credit reports, a Recycling Market Development
				  Zone Administrator's acknowledgement of the project; payment of a loan
				  application fee, and certification of compliance with applicable laws and
				  regulations to properly conduct and operate the business in
				  California.
(2) Demonstration of
				  ability to repay shall include the business historical and projected financial
				  statements and income tax returns; key management and ownership personal
				  financial statements and income tax returns; schedules of debts; facility lease
				  agreement or copy of deed of trust on the project site; sources and uses of all
				  project costs. The financial projections shall include a list of assumptions
				  under which they were prepared that are reasonable and can be substantiated.
				  The applicant may need to provide a feasibility study and cost break even
				  analysis accounting for the fixed and variable costs to produce a product
				  including the sales price of the product and the quantity of units that must be
				  produced and sold to achieve a break even and profitable cash flow.
(3) Demonstration of the ability to
				  collateralize the loan shall include a detailed list of assets that will secure
				  the loan with documentation supporting the asset value such as appraisals,
				  purchase orders, invoices, cancelled checks, or similar documents; and
				  ownership verification such as deeds of trust, Uniform Commercial Code
				  financing statements, Ownership Certificates. The Board reserves the right to
				  discount the asset value based on age and remaining expected useful
				  life.
(4) The applicant shall
				  provide documentation to substantiate a matching funds requirement of
				  twenty-five percent or more investment into the project. This shall be achieved
				  by providing purchase orders, invoices, cancelled checks, supplemental
				  financing commitment letters or promissory notes, executed investor agreements
				  with evidence of transfer of funds, or other similar documents.
(5) Description of the project to be financed
				  including the feedstock source, type, quantity and availability, the
				  manufacturing process, end product specifications and marketability, current
				  and projected tonnage of materials to be diverted from California landfills,
				  public environmental reports and indemnification to discern the possible risks
				  which may arise from hazardous waste or materials related to the project or
				  previous operations at the site.
Additional information required from businesses and
					 not-for-profit organizations is described in subsection (b) below. Local
					 government or agency applicants must also provide the information requested in
					 subsections (b) and (c) below.