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Revolving Loan Fund Resource Center

Revolving loan funds (RLFs) are finance tools that can be used to help grow small and mid-sized businesses. A RLF is a funding pool that replenishes itself. As existing loan holders make payments, the payments are recycled to fund new loans. RLFs provide businesses with a flexible source of capital that can be combined with conventional sources. RLFs be used to fill the gap between the loan amount a borrower obtains from a private lender and the amount needed to sustain a business. Revolving loan funds issue loans at competitive rates, making them attractive to borrowers. Because RLFs must replenish the fund to make future loans, programs must maintain a balance between charging attractive rates and earning a reasonable rate of return.

RLFs are typically used for operating capital, acquisition of land and buildings, new construction, facade and building renovation, landscape and property improvements, and machinery and equipment. Loan duration varies according to use of the funds. To establish a revolving loan fund, the capital usually comes from a mix of public sources (local, state, and federal governments) and private sources (financial and philanthropic institutions). Most revolving loan funds are at least partially funded by local, public sources of capital. This funding is usually a grant and does not need to be paid back. RLF programs carry the risk of borrower default as well as constant pressure to replenish a fund so it may continue to make loans. However, through sound policies and procedures, these issues can be easily addressed and managed throughout the life of a fund.

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+RLF Program Database

The RLF Program Database provides details on loan funds throughout the country. Resources are restricted to CDFA members only. CDFA members must login with their unique CDFA username and password to access restricted items. Non-members can join CDFA today to gain access to the entire database. Visit the CDFA RLF Resource Center to learn more about loan funds, or submit your RLF for this database.

+Case Studies

RLFs are flexible, efficient, and effective tool for various uses. CDFA has collected hundreds of case study examples.

CDFA Texas Webinar: Driving Economic Development with Revolving Loan Funds
A revolving loan fund is a self-replenishing pool of money, utilizing interest and principle payments on old loans to issue new ones. They come in many shapes and sizes and support a variety of economic development activities. This webinar will outline the basic principles of capitalizing and managing RLFs and how to maximize their use to support businesses in Texas.
Durango & Alamosa: Revolving Loan Funds at their Best
Durango and Alamosa are two model success stories for using targeted revolving loan funds to promote, create, and assist businesses in their communities. Patrick Waggoner, Justin Fazzari, and Kevin Wilkins showcase how some selected business investments that have been made and outline how the RLFs work to generate economic activity and communications with the business community.
Palm Beach County Brownfields Revolving Loan Fund Program
Greg Vaday of Palm Beach County discusses how to establish a RLF within the parameters of EPA funding.
The Emerging Technology Fund
James P. Kenney of MassDevelopment describes the Emerging Technology Fund, an RLF established to encourage growth of emerging technology companies.
CDFA Brownfields Financing Webinar Series: Reaching Your Redevelopment Goals with Brownfields Revolving Loan Funds
As part of the CDFA Brownfields Technical Assistance Program, the fifth installment of the Brownfields Financing Webinar Series highlights the key features of a successful Brownfield Revolving Loan Fund and the commonalities and challenges associated with implementing this underutilized financing resource. Learn how even the most challenged or understaffed communities can implement Revolving Loan Fund loans and sub-grants.
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+Lending Policies Criteria & Conditions

RLFs are flexible, efficient, and effective tool for various uses. CDFA has collected hundreds of case study examples.

Hermitage Revolving Loan Fund Manual
The City of Hermitage, Mercer County, Pennsylvania operates an Industrial/Business Revolving Loan Fund (RLF) to provide funding assistance in the form of low-interest financing for eligible economic development projects.
Public Private Partnership at Work
Ryan Whitehead of the Wyoming Bank & Trust discusses the decision process for funding revolving loan fun programs.
The Decision Process
Cory Phelps with Idaho Housing and Finance Association gives the insider's look how bankers make decisions on revolving loan funds touching on risk, capacity, capital, collateral, and more.
When a Deal Goes Bad
Revolving loan funds don't always capitalize successfully, and Mike O'Donnell of the Colorado Lending Source explains the elements that play into bad RLF deals.
Ohio Statewide Development Revolving Loan Fund Management
Dianne Allen of the Ohio Statewide Development Corporation presents solutions to effectively manage a revolving loan fund by suggesting alternative deal structures, detailing loan application processes, and giving other administration approaches.
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+Headlines

+Publications

CDFA publishes one of the only comprehensive guides to revolving loan funds. Purchase a copy today in the CDFA Bookstore.

DFCP Study Pack
The DFCP Complete Book Package contains all of the reference guides to study for the DFCP final exam at a 10% discount.
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency
The Handbook is designed to be a starting point for local leaders to engage in the creation or acceleration of a DFA to build and utilize the development finance toolbox.
Practitioner's Guide to Economic Development Finance 2nd Edition
The Practitioner's Guide provides the insight and practical information needed to critically understand how economic development is financed and the tools, strategies and techniques used to build strong communities.
Revolving Loan Fund Reference Guide
The Revolving Loan Fund Reference Guide offers an in-depth look at RLF program development, implementation and management. This guide demonstrates how a RLF program can compliment economic development strategies, encourage investment and assist traditionally underserved businesses.
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+Webcasts

CDFA // BNY Mellon Webcast Series: Opportunities and Advancements in Water Finance
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, learn from expert speakers Jordan Dorfman from the EPA, Tyler Old from PFM, John DeLuca from CoBank, and Jong Sook Nee from McManimon, Scotland & Baumann, LLC as they discuss developments in the water finance space and how different financing mechanisms like bonds, RLFs, P3s, and other tools are being used to address today’s water infrastructure projects.
CDFA // BNY Mellon Webcast Series: Immigrant & Refugee Financing Strategies
This month’s CDFA // BNY Mellon Development Finance Webcast Series featured Jim Claybaugh of Opening Doors, Inc. as he discussed unlocking financing tools that support immigrants and refugees.
CDFA // BNY Mellon Webcast Series: Financing Water Infrastructure
During this CDFA // BNY Mellon Development Finance Webcast, hear from financing experts as they share capitalization options available for water infrastructure.
CDFA Brownfields Financing Webinar Series: Reaching Your Redevelopment Goals with Brownfields Revolving Loan Funds
As part of the CDFA Brownfields Technical Assistance Program, the fifth installment of the Brownfields Financing Webinar Series highlights the key features of a successful Brownfield Revolving Loan Fund and the commonalities and challenges associated with implementing this underutilized financing resource. Learn how even the most challenged or understaffed communities can implement Revolving Loan Fund loans and sub-grants.
CDFA Brownfields Redevelopment Webinar: Financing Post Disaster Recovery
As part of the CDFA Brownfields Technical Assistance Program, this second installment of the Brownfields Financing Webinar Series focuses on disaster recovery assistance and highlights best practice examples, case studies, and brownfield redevelopment financing tools that will allow your community to be more resilient in the face of natural disasters.
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CDFA National Sponsors

  • Alaska Industrial Development and Export Authority
  • Baker Tilly Virchow Krause
  • Ballard Spahr LLP
  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Frost Brown Todd, LLC
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • MB Financial Bank, NA
  • McCarter & English, LLP
  • McGuireWoods
  • Miles & Stockbridge P.C.
  • NW Financial Group, LLC
  • SB Friedman Development Advisors
  • Squire Patton Boggs
  • Stern Brothers & Co.
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Wilmington Trust
  • Z. The Bond Buyer
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