[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR307.9]

[Page 625]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 307_ECONOMIC ADJUSTMENT ASSISTANCE INVESTMENTS--Table of Contents
 
Subpart B_Special Requirements for Revolving Loan Funds and Use of Grant 
                                  Funds
 
Sec.  307.9  Revolving Loan Fund Plan.

    All RLF Recipients shall manage RLFs in accordance with an RLF plan 
(the ``RLF Plan'' or ``Plan'') as described in this section. The Plan 
shall be submitted to and approved by EDA.
    (a) Format and content. (1) Part I of the Plan titled ``Revolving 
Loan Fund Strategy'' shall summarize the CEDS and business development 
objectives and shall describe the RLF's financing strategy, policy and 
portfolio standards.
    (2) Part II of the Plan titled ``Operational Procedures'' shall 
serve as the internal operating manual for the RLF Recipient. The 
administrative procedures for operating the RLF must be consistent with 
Prudent Lending Practices.
    (b) Evaluation of RLF Plans. EDA will use the following criteria in 
evaluating Plans:
    (1) The Plan must be consistent with the CEDS or EDA-approved 
strategy for the Region;
    (2) The Plan must identify the strategic purpose of the RLF and must 
describe the selection of the financing strategy and lending criteria, 
including:
    (i) An 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; and
    (3) The Plan must demonstrate an adequate understanding of 
commercial loan portfolio management procedures, including loan 
processing, underwriting, closing, disbursements, collections, 
monitoring, and foreclosures. It shall also provide sufficient 
administrative procedures to prevent conflicts of interest and to ensure 
accountability, safeguarding of assets and compliance with Federal and 
local laws.
    (c) Modification of RLF Plans. An RLF Recipient must request and 
obtain EDA approval prior to any modification of the Plan.