The Closed Loop Fund — which aims to increase recycling, including the recovery of plastics — is setting aside $5 million to loan to projects targeting locations “that currently lack comprehensive recycling infrastructure.”
The fund has raised $100 million to loan to municipalities and private companies through either no-interest or low-interest funding.
The group's latest initiative says potential loans can range from $1 million to $5 million per project, with a term of three to eight years.
Preference will be given to experienced material recovery facility operators and projects that can be running within 18 months of receiving financing. Closed Loop also will give preference to projects that “provide for advanced and scaled processing services” and projects where recycling carts are provided for residents.
Projects that can attract additional investors also will be given preference, Closed Loop said.
Money can be used to buy equipment and vehicles as well as for working capital and facility loans for refinancing or expansion.
“Construction loans for new facilities will only be considered in partnership with an already identified lead construction lender,” the group said. Those receiving loans also need to be able to contribute 10 percent of a projects total funding in equity.
Earlier this year, Closed Loop indicated it is working with consulting firm Reclay StewardEdge Inc. to more closely examine ways to improve the recycling rate of flexible packaging.
Money for Closed Loop loans comes retailers and brand owners, including Walmart, Coca-Cola, 3M, Johnson & Johnson, PepsiCo, Unilever, Procter & Gamble, Colgate-Palmolive, Dr. Pepper Snapple and Keurig Green Mountain.