Revolving loan fund program

Grantees may use cleanup funds for two types of brownfield sites — hazardous substances or mixed contaminant sites and petroleum sites. Grantees may also use funds for pre-cleanup site assessments. Grantees may use cleanup funds to implement an environmental cleanup, as follows:. Invite lenders and potential borrowers to participate in the design process.

Establish the purpose of the RLF. This should include a needs assessment. Set the eligibility requirements for borrowers. Determine the allowed uses of funds as well as prohibited uses. Set a minimum and maximum amount for the loans. Decide if the loans must be matched by existing equity or other sources of funds. Determine the length of the loan term, which may vary based on the use of the loan.

For example, the term for a loan to purchase equipment may be based on the life of the product while a loan for real estate may have a year term. Establish an application fee, origination fee, and policies regarding closing costs. Define the default and delinquency terms. Decide if the interest rate will be variable or fixed and whether the rate will vary based on the project. Develop the loan application form. Create a short pre-application form or checklist to help borrowers determine if they are eligible.

State and local governments can establish RLFs to support both their own energy upgrades i. In order to create a pool of capital for ongoing investments in clean energy, some organizations have developed their own internal RLFs.

These programs start with a fixed pool of internal funds to pay for projects, monies are "lent" internally to specific projects, and then some or all of the savings that accrue from the improvements are repaid to the RLF.

The replenished RLF can then be used to fund additional projects. Internal RLFs are often more an "accounting treatment" than a formal fund, but can be an effective tool for capturing and using the energy savings from clean energy improvements to fund additional facilities investments.

There are a number of entities that can administer revolving funds, but here we focus on government-sponsored and managed RLFs. These programs often focus on financing the cost of efficiency upgrades, such as appliances, lighting, insulation, and heating and cooling system upgrades. The RLF should complement the lending activities of commercial banks.

The applicant needs to fill out an application and submit it along with the required documents listed at the bottom of the application to rita fivco. The RLF is NOT a substitute for conventional lending sources and is intended only to fill the credit gaps in existing local financial markets.

As borrowers repay their loans, the payments are returned to the Revolving Loan Fund to make loans to other businesses.