13 C.F.R. § 307.21   Termination of Revolving Loan Funds.

Title 13 - Business Credit and Assistance

Title 13: Business Credit and Assistance
Subpart B—Special Requirements for Revolving Loan Funds and Use of Grant Funds

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§ 307.21   Termination of Revolving Loan Funds.

(a) EDA may suspend or terminate an RLF Grant for cause, including but not limited to the following reasons:

(1) Failure to operate the RLF in accordance with the Plan, the RLF Grant or this part;

(2) Failure to obtain prior EDA approval for material changes to the Plan, including provisions for administering the RLF;

(3) Failure to submit timely progress, financial and audit reports as required by the RLF Grant and §307.14; and

(4) Failure to comply with the conflicts of interest provisions set forth in §302.17.

(b) EDA may approve a request from an RLF Recipient to terminate an RLF Grant. The RLF Recipient must compensate the Federal government for the Federal Share of the RLF property, including the current value of all outstanding RLF loans. However, with EDA's prior approval, upon a showing of compelling circumstances, the RLF Recipient may use for other economic development activities a portion of RLF property that EDA determines is attributable to RLF Income.

(c) Upon termination, distribution of proceeds shall occur in accordance with §307.20(d).

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