Revolving Loan Fund Plan
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
Each REDG Intermediary must adopt a Rural Development-approved plan that specifies that:
(a) The initial loan made from the Fund will be at zero percent interest and have a maximum term of 10 years;
(b) Loans made from loan repayments may carry an interest rate less than, or equal to, the prevailing prime rate. The Intermediary determines repayment terms and security arrangements on these loans.
(c) Loans made from repayments of REDG loans must be for eligible Program purposes;
(d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions; and
(e) No changes will be made to a Rural Development-approved Revolving Loan Fund Plan without the prior written approval of Rural Development.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.