Revolving Loan Funds are a special category of program income that allows the funds to be set aside for a designated use. A Revolving Loan Fund (RLF) is a separate fund (with a separate set of accounts that are independent of other program accounts) established to carry out specific activities that, in turn, generate payments that fund future activities. All RLF programs are required to coordinate with their CDBG Program Manager on the disbursement of RLFs.
Note: The Division of Housing has established a Revolving Loan Fund (RLF) Policies, Guidelines, and Procedures for the fiscal administration of its CDBG grant and loan projects. DOH grantees should contact their DOH Development Specialist.
For Economic Development Projects Only
If Economic Development revolving loan fund contracts do not contain a specified amount or percentage of miscellaneous income which can be used for revolving loan fund general administrative expenses, the grantees or sub grantees may utilize the following formula to calculate the maximum authorized amount:
Sixteen percent (16%) of the [sum of the total contract award plus program income earned to date].
This amount is the maximum amount which may be used by Economic Development revolving loan fund projects for general administration, regardless of whether the funds actually come from a direct state contract line item or from Miscellaneous Income.