BDC Capital outlines recycling loan fund: loans $50,000'$500,000, flexible terms to help reuse and recycling businesses
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Summary
BDC Capital described the Massachusetts Recycling Loan Fund and other financing products available to recycling and reuse businesses, noting loans typically range from $50,000 to $500,000 with terms up to 10 years and options to work alongside banks or state grants. BDC said reuse businesses are eligible and the fund aims to be flexible for niche
BDC Capital, which manages the Massachusetts Recycling Loan Fund, presented loan options for recycling and reuse businesses during the RMD work group call and encouraged early outreach to discuss financing needs.
Carol Brennan, senior staff at BDC Capital, said the loan fund is intended for Massachusetts businesses engaged in recycling or reuse and is designed to be flexible when conventional lenders cannot meet project needs. Loan amounts commonly range from $50,000 to $500,000 and terms can extend up to 10 years. Brennan said BDC can work with banks, grant awards and other financing to craft a combined solution.
Why it matters: Stakeholders cited limited access to capital as a barrier for decentralized or niche recycling projects and for reuse-storage facilities. BDC's loan products, which include term loans, working capital and equipment financing, provide an option for businesses that need a longer amortization schedule, a higher advance rate on equipment purchases or supplemental capital alongside a bank loan.
Key details: Brennan said the recycling loan fund is a loan program (not a grant) and is funded through MassDEP support; it has been recycled over several decades and has financed a range of projects. BDC said it can lend at higher advance rates (up to 90% for equipment in some cases), offer favorable fixed rates and longer tenors than many banks, and approve loans more quickly in some cases. Interest rates vary with risk; Brennan cited typical competitive rates in the mid-single digits to low double digits depending on borrower risk and underwriting. She confirmed reuse businesses are eligible and noted examples such as companies that resell parts or repurpose durable goods could qualify.
How to apply: BDC requests an initial conversation to vet eligibility and to assemble documentation similar to bank underwriting (financial statements, projections and information about material quantities diverted or to be diverted). MassDEP makes a determination on recycling eligibility while BDC performs credit underwriting; approved loans are serviced by BDC and the firm remains the primary point of contact.
Other financing: Brennan also highlighted other BDC products, including SBA 504 financing, CDFI lending (smaller loans aimed at gateway cities or underserved borrowers), mezzanine financing and accounts-receivable lending. She encouraged businesses to call BDC early in planning to explore mixed-structure financing with banks and grants.
Contacts: Brennan and colleagues asked interested parties to reach out to BDC for a conversation and provided contact details and a web portal with program descriptions.
