A Revolving Loan Fund (RLF) is a grant program through the Environmental Protection Agency (EPA) offering loans and subgrants for brownfield remediation projects. Recipients are usually landowners or developers, but municipal governments may also apply depending on the project’s specifications.
The EPA funds RLF grants through:
- loan principal repayments
- interest earned on outstanding loans
- interest earned on accounts containing RLF funds
- loan fees and loan-related charges from borrowers
- income generated from the sale, collection, or liquidation of assets acquired through loan defaults
This allows RLFs to provide a constant stream of self-sustainable supporting funds for brownfields projects, giving them the potential to last for many years.
What is the Difference Between an RLF Grant and an RLF Program?
The EPA has many brownfield remediation grants available, one being the RLF Grant. RLF Grants usually total around $1 million and are given out to eligible municipalities to set up RLF Programs, which they can use to provide loans and subgrants to entities within their jurisdiction. RLF Grants provide a way for the EPA to target brownfield remediation on a local scale, putting funding in the hands of the local governments who best understand the needs of their communities. RLF Programs are the result of a municipality receiving an RLF Grant and setting up their own fund to be distributed to local applicants. Once in place, applicants who wish to receive funding for brownfield projects can apply to their local municipality’s RLF Program for a loan or subgrant. The EPA’s RLF Grant is only available for municipalities who wish to set up RLF Program. Individual landowners or developers who wish to fund their brownfield projects are not eligible for the EPA’s RLF Grant.
The EPA has full involvement in RLF Programs for an agreed upon period, usually five years, during which time they will oversee project eligibility requirements on behalf of the municipality. However, RLF Programs are designed to sustain themselves for years after the EPA’s involvement ends, with some lasting over a decade.
Learn more about applying for a grant or grant program here.
