Revolving Loan Funds Resource Center
Revolving Loan Fund programs are diverse tools that communities can use to support small and mid-sized businesses, environmental remediation and even affordable housing. Revolving Loan Funds are designed to be evergreen as they are maintained by the repayment of principal and grow through interest payments.
Establishing a revolving loan fund provides access to a flexible source of capital that can be used in combination with more conventional sources. Often the RLF is a bridge between the amount the borrower can obtain on the private market and the amount needed to start or sustain a business. For example, a borrower may obtain 60 to 80 percent of project financing from other sources.
Quality RLFs issue loans at market or otherwise competitive and attractive rates. Many RLF studies have shown that access to capital and flexibility in collateral and terms is more important to borrowers over lower then market interest rates. RLF programs should be built on sound interest rate practices and not perceived as free or easy sources of financing. RLFs must be able to generate enough of an interest rate return to replenish the fund for future loan allocations. With competitive rates and flexible terms, a RLF provides access to new financing sources for the borrower, while lowering overall risk for participating institutional lenders.
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-Understanding Revolving Loan Funds
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CDFA-EDA Revolving Loan Fund Best Practices Handbook
Throughout the CDFA EDA RLF Best Practices Program, several common characteristics emerged from high performing RLFs. The best practices outlined in this guide synthesize these exceptional traits and address the strategies employed by successful EDA...
DF Perspectives 3: Tips for Managing Your RLF Program
This article provides information on fund capitalization, RLF committee, program marketing, and loan servicing for revolving loan funds. It was written by CDFA and appeared in the third issue of Development Finance Perspectives.
A Guide to Public Sector Business Loan Funds
This report, produced by the National Association of Development Organizations (NADO) Research Foundation and the Development District Association of Appalachia, examines the role of public sector loan funds and includes discussions on best practices
Establishing a Revolving Loan Fund
This fact sheet, produced by the Ohio State University Extension, discusses how to establish a loan fund to encourage small business development in a community. Included in this fact sheet is a discussion on the role of Revolving Loan Funds and the basic steps in establishing a Revolving Loan Fund.
Administering a Revolving Loan Fund
This fact sheet, produced by the Ohio State University Extension, discusses the basics of administering a Revolving Loan Fund. The fact sheet includes advice from application through loan servicing.
-Resources
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-EDA Revolving Loan Fund Resources
CDFA-EDA Revolving Loan Fund Best Practices Handbook
Throughout the CDFA EDA RLF Best Practices Program, several common characteristics emerged from high performing RLFs. The best practices outlined in this guide synthesize these exceptional traits and address the strategies employed by successful EDA RLFs of all sizes. Each recommendation includes a basic description and several resources for expanded learning. This RLF Best Practices Handbook serves as an overview of the best practices that EDA RLF recipients should consider to maximize their lending capacity, support local businesses, and enhance the economic development financing ecosystem in their community.
COVID-19: Comprehensive Recovery Strategy
Based on the input of our 500+ members, CDFA has developed a set of policy proposals that would allow state and local governments, through development finance agencies, to be immediate problem solvers that can help alleviate the extreme economic challenges facing small businesses and communities to put America securely on the path to recovery.
CDFA EDA Revolving Loan Fund Webinar Series: Revisiting Your Revolving Loan Fund Plan
Designing the Revolving Loan Fund is one of the most critical aspects of the program process. The design process should be thorough and clearly defined to address the goals and objectives of the RLF while also clearly outlining the expectations of borrowers. It’s important to have regular reviews of the RLF program to make sure it is still relevant and effective.
CDFA EDA Revolving Loan Fund Webinar Series: Building Partnerships to Maximize Your RLF Impact
The varying size of Revolving Loan Funds leaves many organizations without the financial and staff capacity to effectively support all aspects of a lending program and building partnerships can enhance its effectiveness and impact. Key partnerships could include providing technical assistance for borrowers, outsourcing the servicing of the portfolio, or even in some cases, partnering with another organization that can assume the management of the entire RLF program. Listen as Robyn Jacobson, Robin Weis, and Andy Rachlin discuss the various partnerships your organization can structure in order to maximize your RLF's impact.
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-EPA Brownfields Revolving Loan Fund Resources
-Lending Policies, Criteria, & Conditions
CDFA-EDA Revolving Loan Fund Best Practices Handbook
Throughout the CDFA EDA RLF Best Practices Program, several common characteristics emerged from high performing RLFs. The best practices outlined in this guide synthesize these exceptional traits and address the strategies employed by successful EDA RLFs of all sizes. Each recommendation includes a basic description and several resources for expanded learning. This RLF Best Practices Handbook serves as an overview of the best practices that EDA RLF recipients should consider to maximize their lending capacity, support local businesses, and enhance the economic development financing ecosystem in their community.
Hermitage Revolving Loan Fund ManualMembers only 
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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.
The Decision ProcessMembers only Login
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.
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-Marketing Examples
-Sample Applications
-Programs Map
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
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Submit your RLF for this database.
-Case Studies
Revolving Loan Funds can be used to achieve many different community and economic development goals. CDFA has collected over seventy case study examples.
CDFA Food Finance White Paper Series: Advancing Food Systems Through Development Finance
This is the sixth and final white paper in a series examining the potential creation of a food systems asset class that supports the market growth of local and regional food systems. This paper presents three replicable strategies for restoring local food systems: reframe food systems development as infrastructure and economic development; build effective relationships and partnerships across the entire food system; and plan for strategic food system financing.
California Rural Infrastructure Finance Guidebook
CALED knows from its work supporting economic development throughout California that infrastructure financing is a challenge for many rural communities. CALED collaborated with CDFA to develop this guidebook to meet the need for a resource to help build capacity in those areas, as well as move economic development projects forward.
Innovative State-Led Efforts to Finance Agricultural ConservationMembers only Login
U.S. farmers are currently facing the most difficult agricultural economy since the 1980s. At the same time, many states are wrestling with the necessity of addressing environmental challenges. This report expounds upon the excellent work states are doing regarding conservation tax credits, cover crop incentives and environmental certifications to increase conservation across the landscape. The report also highlights how these programs work for agricultural producers and states.
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-Headlines
-Publications
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 complement economic development strategies, encourage investment and assist traditionally underserved businesses. With seven case studies of proven RLF programs and over twenty sample documents, policies, and applications, this guide covers the essential elements of operating a successful RLF program.
Practitioner's Guide to Economic Development Finance
The Practitioner's Guide to Economic Development Finance 2nd Edition is the only comprehensive resource dedicated to building and utilizing the development finance toolbox. 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. From bonds, tax increment finance and special districts to tax credits, seed & venture capital, revolving loan funds and much more, this Guide outlines the financing tools required for succeeding in today's competitive economic development climate.
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency (Handbook) serves as a companion to the Practitioner’s Guide to help illuminate the structures of development finance agencies (DFAs), essential conduits to access development finance tools. The Handbook provides an overview of DFAs and their myriad roles in various development efforts. Included in this discussion is a comprehensive look at over a dozen high-performing DFAs throughout the country. 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.
View More Publications -Training Courses
Intro Revolving Loan Fund WebCourse
December 8-9, 2021
Daily: 12-5 PM Eastern
The Intro Revolving Loan Fund Course offers an in-depth look at RLF program development, implementation, and management. This course demonstrates how an RLF program can complement your economic development strategy, encourage investment, and assist traditionally underserved businesses. During this course, attendees learn the essential elements needed to operate a successful RLF program and discuss programs making a difference in communities throughout the country.
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-Upcoming Events
CDFA Food Systems Finance Webinar Series: Financing Food Systems Through FinTech
Tuesday, July 13, 2021
2:00 PM - 3:30 PM Eastern
Local food systems face similar barriers accessing technology as they do financing for small businesses and development projects. Technological innovations have the potential to help build localized food systems that are more equitable, sustainable, and efficient. From agtech to online lending to locavesting, there are a variety of financial technologies - or “fintech” - that can bring capital to small food businesses and invest in communities as they restore their local food system. In this installment of the CDFA Food Systems Finance Webinar Series, we will explore how tech innovations are increasing access to financing for food-related businesses and projects, and how finance is supporting the integration of new technology in local food systems.
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CDFA Food Systems Finance Webinar Series: Debunking Risk in Food System Finance
Tuesday, October 12, 2021
2:00 PM - 3:30 PM Eastern
The food system is often perceived as loosely defined and fragmented which leads to many food-related businesses to regularly be perceived as too risky for traditional lending. The perception of risk can be detrimental for the ability of local food-related businesses to access affordable capital. Luckily, the participation of a development finance agency can reduce both real and perceived risks and protect the viability of a project. In this installment of the CDFA Food Systems Finance Webinar Series, we will break down the real and perceived risks of lending and discuss a variety of affordable financing solutions that are being employed by development finance agencies to invest in local food-related businesses and projects.
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Intro Revolving Loan Fund WebCourse
December 8-9, 2021
Daily: 12-5 PM Eastern
The Intro Revolving Loan Fund Course offers an in-depth look at RLF program development, implementation, and management. This course demonstrates how an RLF program can complement your economic development strategy, encourage investment, and assist traditionally underserved businesses. During this course, attendees learn the essential elements needed to operate a successful RLF program and discuss programs making a difference in communities throughout the country.
Register
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-Webcasts
CDFA Reframe, Build, Plan: Restoring America's Local Food Systems
CDFA released the final publication of the CDFA Food Finance White Paper Series, Advancing Local Food Systems Through Development Finance. This webinar provides an overview of this publication as we review CDFA's framework for expanding traditional financing and attracting capital to local food systems through the Reframe, Build, Plan approach.
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