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<br /> REVOLVING LOAN FUND CALF) GUIDEUNES <br /> <br /> SECTION I - THE PLAN <br /> Purpose <br /> <br />The revolving loan fund (RLF) was created as a local public sector financial tool to stimulate <br />economic growth in the city/county. The purpose of this initiative is to set up a revolving roan <br />fund to provide capital for private projects which would not be possible without such <br />assistance. The RLF is funded by program income which is a derivative of an original grant <br />through the U. S. Department of Housing and Urban Development. <br />The program is not intended to duplicate or compete with local financial institutions, but rather <br />to complement them. The major difference between the RLF program and conventional <br />financing is the goal to be derived from lending money. For the conventional financing <br />institutions, the goal is profit. For the RLF program, the goal is private-sector job creation and <br />capital formation. The RLF is designed to fill gaps and complement the local financial markets <br />and provide or attract capital which otherwise would not be available for economic <br />development. <br />"Revolving fund" means a separate fund (with a set of accounts that are independent of other <br />program accounts) established for the purposes of carrying out specific activities which, in turn, <br />generate payments to the fund for use in carrying out such activities. <br /> Definition of ProGram Income <br /> <br />Program income is defined as gross income received by the Contractor directly generated from <br />the use of Community Development Block Grant (CDBG) funds. When such income is <br />generated by an activity that is only partially assisted with CDBG funds, the income shall be <br />prorated to reflect the percentage of CDBG funds used. Program income is treated as <br />additional contract funds and is subject to all applicable requirements governing contract funds. <br />Program income includes, but is not limited to the fonowing: <br />- proceeds from the disposition by sale or long term lease of real property purchased or <br /> improved with CDBG funds; <br />- proceeds from the disposition of equipment purchased with CDBG funds; <br />- gross income from the use or rental of real or personal property acquired by the <br /> recipient or a subrecipient with CDBG funds, less the costs incidental to the generation <br /> of such income; <br />- gross income from the use or rental of real property owned by the recipient or a <br /> subrecipient that was constructed or improved with CDBG funds, less the costs <br /> incidental to the generation of such income; <br />- payments of principal and interest on loans made using CDBG funds; <br /> - 1 - <br />