This type of loan is intended for very small businesses like farmers and artisans. This group is higher risk and does not have access to normal lines of credit. The goal is to get these business self sufficient through use of the funds. The term “revolving” refers to the nature of the fund. Basically, when one of the borrowers in the fund pays its debt, it frees up money for the fund to lend to another small business.
RLF Expectations:
