The Florida Recycling Loan Program, administered by Florida First Capital Finance Corp. (FFCFC) for the Department of Environmental Protection, provides below market financing for companies that manufacture products from recycled materials or convert recyclable materials into raw materials for use in manufacturing. The program offers funding for the purchase of machinery and equipment at a fixed interest rate as low as 2% below the Prime Lending Rate for the life of the loan (up to 10 years). The potential borrower is required to have an equity injection of 10% of the total amount of the loan.

The application process begins with the pre-application. Information requested on the pre-application form will consist of the following:

• Purpose and description of the project
  
• Type, source, and quantity of recyclable material involveList of equipment, including type, purpose and status of equipment (new/used)
  
• Total project cost with a breakdown of proposed uses of funds
  
• Source(s) of additional funding including applicant’s equity contribution, and if used, third party funds
  Estimated income and expenses for the project, or proforma documents, and
  
• Business plan showing evidence of product market and source of raw materials.

Once the pre-application is received, the Technical Review Committee at DEP then reviews it. If the Technical Review Committee approves the pre-application, it is then ready for the next step in the process: The credit application process. At that time, the customer will be given a credit application packet. The credit application process will involve the following steps:

• Applicant will submit a complete copy of the credit loan application and supporting documents with original signatures to FFCFC. Financial statements must be current within 120 days, and machinery and equipment price quotes must be current within 30 days with an indication of price stability.
  
• Once the credit packet is complete it will be reviewed for approximately 2 weeks. This time frame may be extended, however, if additional information is requested from the applicant.
  

The credit review process consists of the following:

• A formal financial credit analysis of the applicant, the company, credit reports and project analysis.
  
• The application will be evaluated based on the applicant credit-worthiness, strength of collateral, cash flow, and source(s) of repayment. Terms and conditions in the loan will vary depending on the evaluation.
  
• Applicants that meet the Florida Recycling Loan Fund’s credit standards will be presented to the FFCFC board of directors loan committee.
  
• FFCFC will notify the applicant in writing if the loan is approved and send an acceptance letter covering the terms and conditions of the loan. Alternatively, FFCFC will also send a letter to applicants indicating reason for a rejected application.
  
• After the borrower has returned an executed acceptance letter, the loan closing documents will be prepared. Generally, loan closings must take place within 90 days of acceptance date, unless other arrangements are negotiated with FFCFC during the application review phase. If the closing does not occur within 90 days, the applicant may be required to submit current financial statements and equipment price quotes.
  
• Loan funds will be disbursed to the equipment vendor when proof of machinery or equipment installation is provided in accordance with the terms of the loan.
  
  
  (get Florida Recycling Loan Brochure)