EDA Economic Adjustment Assistance — Revolving Loan Fund (RLF) Program
U.S. Economic Development Administration
$800K–$1.4M (to RLF operator)
EDA capital for communities to build local lending
EDA makes Economic Adjustment Assistance grants to nonprofits and government entities to capitalize or recapitalize Revolving Loan Funds (RLFs). These RLFs then lend to small businesses that cannot access traditional bank financing, providing gap capital for job creation. Grants average $800K–$1.4M per award; the RLF then deploys those funds as loans to businesses, repays itself, and recycles the capital indefinitely.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $800,000 – $1,400,000
- Realistic amount
- EDA makes approximately 6 RLF capitalization awards per year. End-borrower business loans from EDA-capitalized RLFs typi…
- Deadline
- Rolling — EDA accepts RLF applications under its standing FY2025 Public Works and Economic Adjustment Assistance NOFO. Updated as of May 2026.
- Status
- active
- States
- Nationwide
- Payment model
- advance
Who qualifies
- Eligible applicants are: cities/counties/other political subdivisions of a state, states, public or private institutions of higher education, public or private nonprofits, Indian tribes, and certain for-profit entities in exceptional circumstances
- Applicant must demonstrate: need for a new or expanded public financing tool to enhance business assistance programs; types of financing activities anticipated; and capacity to manage RLF lending operations
- The RLF must support a Comprehensive Economic Development Strategy (CEDS) for the region
- Organization must demonstrate lending experience or partnerships with experienced lenders
- Must commit to using revolving repayments to make new loans — not to cover administrative costs beyond allowed percentage
- Primary activity must be in an economically distressed area (typically EDA-designated or meeting income/unemployment thresholds)
Hard requirements
- Funds intermediaries, not businesses directly
What it covers
Eligible expenses
- Grant funds used to capitalize a loan pool (the RLF corpus) for lending to small businesses
- Program administration costs up to allowable percentage limits
- Loan underwriting tools and financial management systems
- Loan loss reserves (within regulatory limits)
Ineligible expenses
- Direct grants to businesses (RLF funds must be deployed as loans, not grants)
- General operating costs of the applicant organization beyond RLF administration
- Refinancing of existing loans not related to economic adjustment activities
- Loans to businesses outside the defined service area
- Political activities or lobbying
How to apply
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1
Contact regional EDA office and confirm strategic fit
Before applying, contact your regional EDA office (there are 6 regional offices) to discuss the RLF concept and confirm alignment with regional CEDS priorities. EDA staff can advise on eligibility and application readiness.
-
2
Register in SAM.gov and obtain active UEI
Ensure active SAM.gov registration and Unique Entity Identifier. The organization's financial management systems must be capable of tracking an RLF portfolio in accordance with EDA RLF regulations (13 CFR Part 307, Subpart B).
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3
Prepare application package
Develop a full application including: project narrative (need for the RLF, business lending plan, target markets), budget narrative, SF-424, CEDS or CEDS-consistency statement, and documentation of matching funds (must cover at least 40% of total project cost).
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4
Submit via grants.gov/simpler.grants.gov under current NOFO
Submit the complete application package under the active Public Works and Economic Adjustment Assistance NOFO on simpler.grants.gov. EDA reviews applications and may request revisions or supplemental information.
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5
Execute award agreement and establish RLF operations
Post-award, execute the EDA grant agreement. Establish internal lending policies, loan review committee, and financial tracking systems compliant with 13 CFR Part 307. Begin lending to eligible businesses in the target area.
EDA funds the operator organization, not the end-business borrower. This is strictly intermediaryOnly — a small business cannot apply directly. EDOs and CDFIs are the right applicants.
Deadline & timing
EDA processes RLF applications on a rolling basis under the combined Public Works and EAA NOFO. No hard cycle deadline — applications reviewed as received. Contact regional EDA office before applying.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.