Tire Equipment Loan Program

 

Senate Bill (SB) 876 (Escutia, 2000), was enacted to provide a comprehensive measure to extend and expand California’s regulatory program for the management of waste and used tires.

The Tire Equipment Loan Program was approved in September 2025.

The program helps promote and develop alternatives to the landfill disposal of used whole tires and used tire components, and to eliminate illegal dumping and unnecessary stockpiling of used tires.

The loan amount will be determined by loan staff analysis of the loan applicant’s overall need, financial capacity, and cash flow ability to repay, and may not exceed $1 million dollars.

Eligible project types must meet project eligibility criteria, including:

  • Reuse projects that will prolong the useful life of a waste tire product
  • Recycling and Remanufacturing projects that produce a value-added feedstock
  • Utilizes postconsumer or secondary waste tire material that is generated in CA and that is typically landfilled or being used to manufacture a value-added feedstock or a finished product

Loans can be used for:

  • Private entities and nonprofit organizations can use loan funds for:
    • Machinery and equipment, including vehicles or other “rolling stock”
    • Leasehold Improvements related to the installation of machinery or equipment being purchased with loan funds, such as electrical upgrades, reinforced flooring, ventilation, or other structural adaptations.
    • Loan-closing points
  • Local government entities can use loan funds for infrastructure and/or capital improvements in support of private, for-profit entities, and nonprofit organizations engaged in tire recycling.

Eligible Applicants

  • Private, for-profit entities
  • Nonprofit organizations (except private schools)
  • Local government entities
    • Cities, counties, and cities and counties
    • Regional or local sanitation agencies, waste agencies, and joint powers

Application

Application documents are available by request, by form request with the RMDZ form, or by email Loans@calrecycle.ca.gov.

Program News

  • The loan interest rate is approximately 4.00% but varies depending upon a loan applicant’s financial ability to qualify for a loan.
  • For updates, send an email to BZAssist@calrecycle.ca.gov.

Funding

$1,000,000 allocation to the Tire Equipment Loan Program annually for FY 2025–26 through 2029-30.

Eligible Project Types – Examples

  1. Reuse

Reuse projects will prolong the useful life of a waste tire product, delaying final disposal or recycling, and may involve the retreading of a waste tire that makes the tire usable again for its originally intended purpose.

  1. Recycling and Remanufacturing

There are two types of tire recycling manufacturers:

  • Processing a feedstock, such as crumb rubber, into a finished product.
  • Producing a value-added feedstock, including, but not limited to, crumb rubber, for use by other manufacturers that produce a value-added or finished product.

Processing feedstock such as crumb rubber into a finished product is subject to the following requirements:

Product Requirements

All products are subject to the following requirements:

  • All crumb rubber must be from California-generated waste tires processed in California. This may include crumb rubber from truck tire buffings.
  • All the crumb rubber used in all products by a loan recipient during the term of the loan shall be:
    • Originally from an eligible California waste tire processor or recycled post-consumer and/or post-industrial scrap rubber where the rubber originated from an eligible California waste tire processor.
  • If supply chain-related issues arise, the loan recipient must contact the Loans Unit immediately to request a meeting. Staff will provide guidance as appropriate.

Eligible Feedstock

California-sourced postconsumer or secondary waste tire material.
For full eligibility criteria, see the Tire Equipment Loan Program Criteria.

two stacks of used tires