FORTUNE Small Business:

Financing tips for a recycling company

Find the investment group that's right for you and learn how to grab its attention.

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(FORTUNE Small Business) -- Dear FSB: I am getting ready to launch and I need someone to finance my recycling business. I'm particularly interested in the area of government surplus copper.

- Richard W. Oldham Sr., Caneyville, Ky.

Dear Richard: The Environmental Protection Agency (EPA) offers a free online resource to help you turn used copper - or any type of recyclable material - into gold. It's called "A Financing Guide for Recycling Businesses: Investment Forums, Meetings and Networks".

The guide is designed to help recycling businesses identify sources of capital and "foster awareness of these opportunities among financiers," says Roxanne Smith, an EPA information officer. "It lists ways for entrepreneurs and economic developers to identify a wide range of potential financial partners for recycling companies. It focuses primarily on private equity as a source of financing. For example, it describes how to set up recycling investment forums, and lists dozens of existing investment groups."

The guide covers everything from why you need a business plan (it even gives a sample table of contents for a recycling company's business plan) to tips on how to polish your presentation at a financing forum.

The guide also provides financing contacts by region, so the southeast list would be a good place to start hunting down leads for a Kentucky-based venture.

For more guidance about how to structure your business, you need to start at a "very local level," says Kate Krebs, executive director of the National Recycling Coalition, a Washington, D.C., nonprofit recycling advocacy group.

"First, check with your solid waste department, typically in the public works department of your local government," she says. They will explain the local rules for collecting recyclables either from government agencies or private residences and businesses. You can also get information you will need about licenses, bidding processes and so on.

For funding leads, Krebs recommends calling the economic development department of your local government.

"There might be financial incentives available to a new entity for recycling," she says. "Typically, though, economic development funds are available for the end-use or manufacturing side of the recycling business infrastructure - i.e., the company that uses recyclable paper to manufacture new paper or products." To top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.