The Recycling Market Development Program START-UP GRANT GUIDELINES
The Recycling Business Start-up Grant allows Indiana entrepreneurs to research the feasibility of entering into a recycling operation and then developing that business successfully. The latest addition to the Recycling Market Development Program (RMDP) is available to new applicants only, encouraging new businesses to explore avenues to make recycling a profitable venture. The grant allows an applicant to use the money to develop a business plan or buy equipment necessary for developing a recycling program. Grants of up to $50,000 will be available to successful applicants. Projects will be awarded funding on a competitive basis, with priority given to projects that show the most promise in increasing the number of Indiana recycling businesses and expanding the market place for recycled-content products. Administration of the program is performed by the Indiana Department of Environmental Management, Office of Pollution Prevention and Technical Assistance (OPPTA). Final funding decisions are made by the Recycling Market Development Board (RMDB).
ELIGIBILITY
Eligible applicants are limited to small Indiana businesses that employ fewer than 100 people and that will further economic development efforts through recycling. In addition: Start-up businesses are considered new businesses, and are defined as those that were established and registered with the Indiana Secretary State’s Office not more than two years prior to published RMDP application deadlines. Businesses must operate in Indiana and all projects must occur in Indiana. Projects must be technically feasible for full-scale operation and comply with all applicable environmental, safety and legal regulations. Commercially proven projects are preferred and should result in the final processing or conversion of secondary (recyclable) materials into industrial feedstock; or the manufacture of products from those feedstocks. Secondary materials include post-consumer materials (i.e., business and household products that have served their intended end uses and have been separated from the waste stream for purposes of recycling), industrial scrap materials, and overstock and obsolete inventories. This does not include materials and byproducts generated from, and commonly reused within, an original process (such as mill broke or home scrap).
Indiana Department of Environmental Management Source Reduction and Recycling Branch 100 North Senate Avenue, MC 64-02, Indianapolis, IN 46204
1-800-988-7901 or 317-232-8172 Fax 317-233-5627 www.recycle.IN.gov
PROJECT EVALUATIONS
Factors to be considered in evaluating projects include the following: Amount of material diverted from Indiana landfills. Applicant’s ability to accomplish project. Market analysis and market potential for end product. Need for assistance. Product readiness for marketing. Priority will be given to businesses with a product(s) that is ready to enter the marketplace. Market potential. Information should be provided on projected market share gained from increased marketing of the product. Type and amount of materials to be recycled or reused. Emphasis will be given to priority materials and landfill diversion rate gained from the manufacture of the product being marketed. Project feasibility. The applicant must identify project need, list project objectives and describe the significance of objectives toward developing the market for recycled-content products. Organizational structure and experience. Economic development benefits. These include employment of Indiana residents, capitol investment in the state, revitalizing distressed regions and communities, wages of employees, worker training, job creation, increased productivity and increased competitiveness of the applicant’s facility. Preference toward projects that produce a recyclable product.
GRANT PARAMETERS
The maximum grant amount available per project is $50,000 and shall not exceed seventy-five percent of the project’s eligible costs. Applicant contribution is a 25 percent cash match of the project cost. Eligible costs include: consulting fees for developing business plans which establish and show sustainability of a recycling program; site improvements, such as refurbishing the infrastructure of a building for assembly lines, process flow, equipment or stock accessibility, etc; purchase of specialized manufacturing equipment and machinery or the conversion of existing equipment and machinery for the manufacturing of products that contain recycled materials or final processing of secondary materials. Equipment costs may include installation and other equipment preparation expenses, but these costs cannot exceed 10 percent of the total grant request. Ineligible costs include, but are not limited to: secondary material collection costs; personal services; travel fees or costs; general land and site improvements (related to property resale value); buildings; licenses or permits; legal costs; working capital; office equipment, including computers; and indirect or overhead expenses. Under the Recycling Business Start-up Grant, a prospective business may apply only once for this grant, using the funding for developing a business plan or purchasing equipment, or both, if
Page 2 of 3
the maximum funding of $50,000 would allow. For example, if an assessment was done of the company’s recycling needs for $23,000, the company could still apply for $37,000 in equipment costs. Recipients of funding through this grant are still eligible to apply for other RPAF loans or grants through the Recycling Market Development Program. Applicants must agree to provide OPPTA an evaluation report upon completion of the project.
APPLICATION PROCESS
Interested applicants must first submit a pre-proposal letter (no longer than four pages) outlining the project. The following information should be submitted to the Indiana Department of Environmental Management, Office of Pollution Prevention and Technical Assistance. Brief description of proposed project. This should provide information on the recycledcontent product being marketed, including the type of secondary material being used and the anticipated diversion rate as a result of the project, as well as details on the potential markets available for the product and the readiness of the company to manufacture and market the product. Project participants. Project budget. Project’s location and time frame. OPPTA will review each proposal letter to ensure compliance with program guidelines and to determine whether the project will be competitive for funding. If approved, applicants will be invited to submit a formal application. Following the submission of a formal application, project evaluation will take place. Final decisions regarding the approval of funding projects are made by the Recycling Market Development Board, which meets on a quarterly basis.
For specific deadline information, contact IDEM’s Office of Pollution Prevention and Technical Assistance, at 1-800-988-7901 or visit our website at http://www.recycle.in.gov.
Confidential Information To the extent feasible and permissible by law, the Indiana Department of Environmental Management (IDEM) will honor an applicant's request that confidential information submitted to IDEM remain confidential. IDEM will treat information as confidential only if: (1) the information is in fact protected confidential information such as trade secrets or privileged or confidential commercial or financial information, (2) the information is specifically marked or identified as confidential by the applicant, (3) the information is segregated and placed in a separate appendix to the application, and (4) no disclosure of the information is required by law or judicial order. If the application results in a loan, the honoring of confidentiality of identified data shall not limit IDEM's right to disclose general project information (not proprietary information) and results to the public. Each and every page containing proprietary data must be clearly identified and marked CONFIDENTIAL.
Page 3 of 3