A new initiative in the U.S. Economic Development Administration-capitalized Revolving Loan Funds programs aims at enhancing cooperative and collaborative opportunities for its nationwide network of about 400 operators.
The RFL program, boasting a combined capital base of more than $1 billion, is a critical source of gap financing for businesses that otherwise might not be able to access money from a traditional lender, according to a Nov. 16 Economic Development Administration news release.
"The Revolving Loan Fund program is one of EDA's oldest and most successful initiatives," Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo said in the news release. "The RLF community of practice will enhance the ability of our network of RLF operators to efficiently direct federal funds to communities most in need."
To pursue the new initiative, EDA awarded a $1.6 million grant to the National Development Council to coordinate and lead a community of practice aimed at building capacity among RLF operators. The National Development Council will work with EDA's Community Reinvestment Fund and Drexel University’s Nowak Metro Finance Lab, to "identify a core group of high-performing RLFs to serve as peer advisors to the nationwide community of RLF operators," the news release said.
"This cadre will share best practices and lead peer-to-peer learning, enhancing the capabilities of RLFs in responding to recovery and resilience efforts and directing resources to underserved communities," the news release said.
Established in 1969, the New York headquartered National Development Council labors to increase capital flow for investment in low-income communities through the support of development and preservation of affordable housing, job creation through training and small business lending and advancement of livable communities via social infrastructure investment.
"The RLF Community of Practice will build RLF organizational capacity, increase qualified high-impact deployment rates of RLF funding, and build an effective and long-term EDA RLF cohort," NDC President Daniel Marsh said.
