RLF Guidance


EDA regulations for RLF awards are codified at 13 CFR chapter III, part 307, subpart B. (PDF)

The RLF regulations incorporate current best practices and strengthen EDA's efforts to evaluate, monitor, and improve performance within the agency's Revolving Loan Fund (“RLF”) program by establishing the Risk Analysis System, a risk-based management framework, to evaluate and manage the RLF program. To make RLF awards more efficient for Recipients to administer and EDA to monitor, RLF regulations are organized to improve readability and clarify those requirements that apply to the distinct phases of an RLF award.

The RLF Recipient's obligation to manage the RLF continues in perpetuity because, absent statutory authority providing otherwise, under current law the Federal Interest in the RLF never expires.


EDA’s RLF Standard Terms and Conditions (STCs) govern each EDA RLF Award as part of the award conditions, along with a specialized set called the Specific (or Special) Award Conditions that are tailored for that particular grant. EDA’s current RLF STCs are available for download by clicking on: RLF Standard Terms and Conditions (PDF)

RLF Plan

Each RLF Recipient must develop and maintain an RLF Plan to demonstrate how the fund fits specific economic development goals and how it will adequately administer the RLF throughout its lifecycle.

RLF Prudent Lending Best Practices

A Revolving Loan Fund (RLF) Plan is a document developed by the RLF Recipient that sets forth the strategies, policies, and administrative procedures for operating the RLF, and incorporates prudent lending practices and ensures due diligence. This document aims to provide guidance on frequently asked questions around Prudent Lending Practices, which refers to the generally accepted underwriting and lending practices for public loan programs to protect Federal and lender interests. Prudent Lending Practices include loan processing, documentation, loan approval, collections and recovery, servicing, administrative procedures, and collateral protection.

RLF Risk Analysis System

EDA’s RLF regulations establish the Risk Analysis System, which is designed to provide more efficient oversight of the RLF Program. The Risk Analysis System was finalized and implemented in 2018 and is available here along with responses to related public comments. (PDF)

For more information about the Risk Analysis System, including scoring, implementation, and performance improvement, please see EDA’s notice in the Federal Register for the draft measures of the Risk Analysis System, which was published on December 1, 2017.