How to Get Government Help to Start a Recycling Business

Federal and local government agencies have many programs that could help new recycling businesses. Assistance to new companies is available in the form of loans, small business counseling and subcontracting opportunities. Incentives in the form of tax credits, exemptions, rebates and grants are provided to companies that use alternative energy or energy efficient facilities to carry out their operations.

Instructions

1. Choose a type of recycling business to start. There are many programs that can provide assistance to companies involved in various forms of recycling, including curbside trash collection, scrap metal recycling and ink or toner cartridge refill and recycling. State environmental management agencies often partner with economic development agencies to offer resources that can help recycling businesses. For example, both The Massachusetts Department of Environmental Protection and Minnesota Pollution Control Agency assist recycling business entrepreneurs to identify markets for their services and learn about state low-cost loan funds for waste recovery businesses. New businesses could also bid for local government contracts to carry out curbside recycling.

2. Identify funding opportunities. The Small Business Administration has two loan programs for new business start-ups. Business borrowers seeking loans under the the Basic 7(a) Loan program apply through participating financial institutions. The SBA Micro-Loan Program provides a maximum of $35,000 dollars in short-term loans to new businesses. The program is managed by local non-profit groups that provide technical support and operate as intermediate lenders. A company that develops new recycling technologies may qualify for government grants. Entrepreneurs can find information on energy innovation grants at the U.S. Department of Energy's Energy TechNet website and the EPA Environmental Technology Opportunities Portal.

3. Register to bid for government contracts. Federal government agencies are required by a variety of federal laws and regulations to buy green products and services. The Environmental Protection Agency maintains a database of products and services that meet federal green purchasing requirements under the government's Environmentally Preferable Purchasing Program (EPP). Businesses can search the Environmental Protection Agency's EPP site to learn about federal requirements for buying green and the types of products and services that qualify. Businesses can register as a U.S. Federal Government contractor at the Central Contractor Registration (CCR) database. Small businesses can register as subcontracts through the Small Business Administration. Commercial operations seeking federal contracts can search FedBizOpps.gov, which provides access to all procurement solicitation across all government agencies.

4. Apply for energy efficiency tax credits. Federal and state governments have a variety of incentive programs to promote energy efficiency in the private sector. For example, Business owners may be qualified for up to a 50 percent tax credit for alternative fuel vehicles. Businesses that invest in equipment and facilities powered by renewable sources of energy can quality for renewable energy tax credits or renewable energy grants. Incentives at the state level will vary. Business owners can search the national database of government incentives to promote energy efficiency and renewable energy at DSIRE.gov.

Tips & Warnings

• Recycling businesses can stand out by obtaining independent third-party certification to designate that their facilities, operations and services are environmentally friendly. Certification will include a logo (also called an ecolabel) that can be included in marketing materials. Environmental certifications include LEED, Energy Star and Green Seal.

References

• Business.gov: Environmental Grants, Loans and Incentives
• Internal Revenue Service: Energy Provisions of the American Recovery and Reinvestment Act
• EPA.gov: Environmentally Preferable Purchasing Program Green Products and Services

Resources

• Business.gov: Starting a Green Business
• Northeast Recycling Council
• Global Ecolabelling Network