Revolving Loan Fund (RLF)

Risk Analysis System Updates

EDA has monitored and evaluated the performance of RLF Program awards using the Risk Analysis System (RAS) since 2018. Since the implementation of risk rating, EDA has aimed to improve upon the tool in a manner that allows RLFs to better align their lending practices with the evolving needs of borrowers and the broader economic landscape. After extensive consideration and review based on feedback from EDA grantees and EDA RLF program staff, as well as data analysis supported with technical assistance grants, it has been determined that five of the current measures are either unnecessary or redundant. Starting with 09/30/2024 Financial Reports, RLF Recipients will use the updated scoring structure. For more information about these changes, the memo linked here (PDF) details the reasons for removing the five measures. An updated scoresheet is provided at the end of the document. If you have any questions, please contact your Regional RLF Administrator.

RLF Community of Practice

Grow America in partnership with Drexel University's Nowak Metro Finance Lab and the Community Reinvestment Fund (CRF) with support from EDA has launched a Community of Practice to strengthen the capacity of RLF operators. This initiative entails a robust schedule of training and professional development programs designed to enable RLF operators to better address the need for flexible, accessible, recovery and growth-oriented small business financing across the country. This Community of Practice (CoP) will build RLF organizational capacity, increase qualified high-impact deployment rates of RLF funding, and build an effective and sustainable RLF cohort.

EDA provides Economic Adjustment Assistance (PDF) grants to eligible recipients to capitalize or recapitalize lending programs that service businesses that cannot otherwise obtain traditional bank financing (and in limited situations to governmental entities for public infrastructure). These loans provide access to capital as gap financing to enable small businesses to grow and generate new employment opportunities with competitive wages and benefits. Financing also helps retain jobs that might otherwise be lost, create wealth, and support minority and women-owned businesses.

RLF Program Fact Sheet (PDF)

Information on how to apply, eligibility, etc., can found in EDA’s FY 2023 Public Works and Economic Adjustment Assistance Programs Notice of Funding Opportunity (PWEAA NOFO).

Examples of how small businesses are plugging into EDA-supported Revolving Loan Funds to ensure their continued growth and success can be found on our RLF success stories page.

RLF RECIPIENTS

A sortable list of EDA-funded RLF Recipients is available here (XLSX). Information includes organization name, city, state, webpage and lending area.

RLF Impact: $1.3B total investment; 700,000 jobs created or saved; 45,000 total loans; 400 rlf operators