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.
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.
The Emerging Technology Fund
James P. Kenney of MassDevelopment describes the Emerging Technology Fund, an RLF established to encourage growth of emerging technology companies.
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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.
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.
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 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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