Requirements for Revolving Loan Fund Cash Available for Lending.

CFR · 2024-01-01 · US · Title 13

(a) (b) (c) (1) Acquire an equity position in a private business; (2) Subsidize interest payments on an existing RLF loan; (3) Provide a loan to a borrower for the purpose of meeting the requirements of equity contributions under another Federal Agency's loan programs; (4) Enable borrowers to acquire an interest in a business either through the purchase of stock or through the acquisition of assets, unless sufficient justification is provided in the loan documentation. Sufficient justification may include acquiring a business to save it from imminent closure or to acquire a business to facilitate a significant expansion or increase in investment with a significant increase in jobs. The potential economic benefits must be clearly consistent with the strategic objectives of the RLF; (5) Provide RLF loans to a borrower for the purpose of investing in interest-bearing accounts, certificates of deposit, or any investment unrelated to the RLF; or (6) Refinance existing debt, unless: (i) The RLF Recipient sufficiently demonstrates in the loan documentation a “sound economic justification” (ii) RLF Cash Available for Lending will finance the purchase of the rights of a prior lien holder during a foreclosure action which is necessary to preclude a significant loss on an RLF loan. RLF funds may be used for this purpose only if there is a high probability of receiving compensation from the sale of assets sufficient to cover an RLF's costs plus a reasonable portion of the outstanding RLF

official document · source cfr-2024 · id 13:§ 307.17