[Code of Federal Regulations]

[Title 45, Volume 4]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR1336.64]



[Page 238]

 

                        TITLE 45--PUBLIC WELFARE

 

CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 

                           AND HUMAN SERVICES

 

PART 1336_NATIVE AMERICAN PROGRAMS--Table of Contents

 

   Subpart F_Native Hawaiian Revolving Loan Fund Demonstration Project

 

Sec. 1336.64  Development of goals and strategies: Responsibilities of 

the Loan Administrator.



    (a) Prior to the approval of any direct loan under the RLF, the Loan 

Administrator will develop and obtain the Commissioner's approval for a 

clear and comprehensive set of goals and strategies for the RLF. The 

goals will specify the results the Loan Administrator expects to 

accomplish from the Revolving Loan Fund, define the RLF's role and 

responsibilities for potential users, and serve as the basis for the 

development of an organizational strategy and operating plan. The RLF 

strategies will provide the Loan Administrator with a sound 

understanding of the economic and market conditions within the Native 

Hawaiian community.

    (b) The following factors shall be considered by the Loan 

Administrator in developing the RLF's goals:

    (1) Employment needs of the local population;

    (2) Characteristics of the local economic base;

    (3) Characteristics of the local capital base and the gaps in the 

local availability of business capital;

    (4) Local resources for economic development and their availability; 

and

    (5) Goals and strategies of other local organizations involved in 

economic development.

    (c) The loan fund strategies developed by the Revolving Loan Fund 

must include the following:

    (1) Business Targeting Strategy: to determine which types of 

businesses are to be targeted by the loan fund. The Loan Administrator 

will develop procedures to ensure that the loans made are directed to 

Native Hawaiians.

    (2) Financing Strategy: to determine the types of financing the loan 

fund will provide;

    (3) Business Assistance Strategy: to identify the possible or 

potential management problems of a borrower and develop a workable plan 

for providing borrowers with the needed management assistance;

    (4) Marketing Strategy: to generate applications from potential 

borrowers and to generate the support and participation of local 

financial institutions;

    (5) Capital Base Management Strategy: to develop and allocate the 

financial resources of the fund in the most effective possible way to 

meet the need or demand for financing; and

    (6) Accountability Strategy: to develop policies and mechanisms to 

hold borrowers accountable for providing the public benefits promised 

(e.g. jobs) in return for financing; to ensure that, until expenditure, 

loan proceeds are held by the borrower in secured, liquid financial 

instruments; to hold borrowers accountable for upholding the commitments 

made prior to the loan; and to develop the methods used by the RLF to 

enforce these commitments.