Hometown Business Preservation Initiative: Revolving Loan Fund Guide

DOI

https://doi.org/10.5703/1288284317611

Description

A revolving loan fund (RLF) serves as a gap financing source, typically allocated for small businesses. In some instances, an RLF is implemented to meet other economic and community development needs. The funds are used to make small loans for projects that do not meet commercial lending guidelines. The fund revolves as loans are repaid and the capital is reused to make new loans.

The Hometown Business Preservation Initiative (HBPI) was launched to provide technical assistance to communities in need of supporting vital community businesses during the COVID-19 pandemic. It was developed to educate and inform communities of the purpose and foundations for quickly establishing a fund. The program later expanded to deliver reinforcement practices for sustaining a revolving loan fund.

It was our goal to deliver a streamlined technical assistance program that packages instruction and materials essential to creating and operating a Revolving Loan Fund. The contents contained in this guide include tutorials, templates, and resources for establishing a new fund as well as perpetuating an existing fund. The contents provide a full scope of principles and strategies, along with examples and recommendations regarding processes and procedures. The embedded templates were designed for effortless adaptation to enhance the effectiveness of any revolving loan fund.

Comments

This guide has been prepared in partnership with the Purdue Center for Regional Development, the Office of Community and Rural Affairs, and the Ohio State University—Department of Extension.

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Feb 28th, 12:00 AM

Hometown Business Preservation Initiative: Revolving Loan Fund Guide

A revolving loan fund (RLF) serves as a gap financing source, typically allocated for small businesses. In some instances, an RLF is implemented to meet other economic and community development needs. The funds are used to make small loans for projects that do not meet commercial lending guidelines. The fund revolves as loans are repaid and the capital is reused to make new loans.

The Hometown Business Preservation Initiative (HBPI) was launched to provide technical assistance to communities in need of supporting vital community businesses during the COVID-19 pandemic. It was developed to educate and inform communities of the purpose and foundations for quickly establishing a fund. The program later expanded to deliver reinforcement practices for sustaining a revolving loan fund.

It was our goal to deliver a streamlined technical assistance program that packages instruction and materials essential to creating and operating a Revolving Loan Fund. The contents contained in this guide include tutorials, templates, and resources for establishing a new fund as well as perpetuating an existing fund. The contents provide a full scope of principles and strategies, along with examples and recommendations regarding processes and procedures. The embedded templates were designed for effortless adaptation to enhance the effectiveness of any revolving loan fund.