Are Revolving Loan Funds A Better Way To Finance Rural Development?
Author InfoMikesell, James J. Wallace, George B. Abstract Revolving loan funds (RLF’s) operate, in principle, by issuing new loans as old loans are repaid. Although best suited to increasing credit access for viable firms that lack alternative funding sources, many RLF’s are assisting local businesses in need of capital but financially nonviable. Two major problems arise when RLF’s are used to transfer this kind of public subsidy to failing businesses: (1) RLF’s require periodic refunding to avoid continued erosion of their capital base and (2) in lending money to high-risk borrowers, RLF’s experience high loss rates. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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