---
kind: "section"
citation: "7 C.F.R. § 4280.25"
title: "7"
number: "4280.25"
heading: "Revolving Loan Fund Plan."
url: "https://uscodex.org/cfr/7/4280.25"
---

# §4280.25. Revolving Loan Fund Plan.


Each REDG Intermediary must adopt a Rural Development-approved plan that specifies that:

- (a) The initial loan made from the Fund will be at zero percent interest and have a maximum term of 10 years;
- (b) Loans made from loan repayments may carry an interest rate less than, or equal to, the prevailing prime rate. The Intermediary determines repayment terms and security arrangements on these loans.
- (c) Loans made from repayments of REDG loans must be for eligible Program purposes;
- (d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions; and
- (e) No changes will be made to a Rural Development-approved Revolving Loan Fund Plan without the prior written approval of Rural Development.

## Notes

### Source

Source: 72 FR 29843, May 30, 2007, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 1989(a), 7 U.S.C. 2008s.

### Source

Source: 70 FR 41303, July 18, 2005, unless otherwise noted.