[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR308.9]

[Page 566]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 308--REQUIREMENTS FOR ECONOMIC ADJUSTMENT GRANTS--Table of Contents
 
  Subpart B--Special Requirements for Revolving Loan Fund Projects and 
                           Uses of Grant Funds
 
Sec. 308.9  Revolving Loan Fund Plan.

    All RLF recipients must manage RLFs in accordance with an RLF Plan 
(Plan) as described in this part. For all RLF recipients, the Plan must 
be submitted to and approved by EDA prior to the grant award. For RLF 
recipients other than states, the RLF Plan must have been approved by 
resolution of the organizations' governing board and such resolution 
must be submitted to EDA along with the Plan prior to the grant award; 
with EDA's approval, political subdivisions of states may be exempted 
from the resolution requirement.
    (a) Format and content. (1) The title page of the Plan should show 
the RLF recipient organization's name and the date the Plan was adopted.
    (2) Part I of the Plan, titled Revolving Loan Fund Strategy, 
summarizes the area CEDS and business development objectives, and 
describes the RLF's financing strategy, policy and portfolio standards. 
Organization of the material and the level of detail provided in the 
subsections of Part I may be varied to improve the narrative flow, 
provided the substantive content is adequately covered.
    (3) Part II of the Plan, titled Operational Procedures, serves as 
the internal operating manual for the RLF.
    (b) Evaluation of Plans. EDA will use the following criteria in 
evaluating Plans:
    (1) The Plan must flow from and be consistent with the EDA-approved 
CEDS for the area.
    (2) The Plan must be an internally consistent, coherent statement of 
the strategic purpose of the particular RLF and the various 
considerations influencing the selection of its financing strategy, 
policies, and loan selection criteria encompassing:
    (i) A financing strategy that demonstrates a knowledgeable analysis 
of the local capital market and the financing needs of the targeted 
businesses; and
    (ii) Financing policies and portfolio standards that are consistent 
with EDA policies and requirements.
    (3) The strategic objectives defined must be sufficiently 
meaningful, though not necessarily quantified, so that progress toward 
them can be assessed over time.
    (4) The administrative procedures for operating the RLF must be 
consistent with generally accepted prudent lending practices for public 
lending institutions.

[65 FR 2532, Jan. 18, 2000, as amended at 65 FR 71025, Nov. 28, 2000]