Prudent management of Revolving Loan Funds.

CFR · 2024-01-01 · US · Title 13

(a) (2) In accordance with GAAP, a loan loss reserve may be recorded in the RLF Recipient's financial statements to show the adjusted current value of an RLF's loan portfolio, provided this loan loss reserve is non-funded and is represented by a non-cash entry. However, loan loss reserves shall not be used to reduce the value of the RLF in the Schedule of Expenditures of Federal Awards (“SEFA”) required as part of the RLF Recipient's audit requirements under 2 CFR part 200. (b) (2) (c) (i) Capital invested by the borrower or others; (ii) Financing from private entities; (iii) The non-guaranteed portions and 90 percent of the guaranteed portions of any Federal loan; or (iv) Loans from other State and local lending programs. (2) Private investments shall not include accrued equity in a borrower's assets. (d)

official document · source cfr-2024 · id 13:§ 307.15