307.12—Revolving Loan Fund Income.
(a) General requirements.
RLF Income must be placed into the RLF Capital base for the purpose of making loans or paying for eligible and reasonable administrative costs associated with the RLF's operations. RLF Income may fund administrative costs, provided:
(1)
Such RLF Income and the administrative costs are incurred in the same six-month (6) Reporting Period;
(2)
RLF Income that is not used for administrative costs during the six-month (6) Reporting Period is made available for lending activities;
(3)
RLF Income shall not be withdrawn from the RLF Capital base in a subsequent Reporting Period for any purpose other than lending without the prior written consent of EDA; and
(4)
The RLF Recipient completes an RLF Income and Expense Statement (the “Income and Expense Statement ”) as required under § 307.14(c).
(b) Compliance guidance.
When charging costs against RLF Income, RLF Recipients must comply with applicable federal cost principles and audit requirements as found in:
(1)
2 CFR part 225 (OMB Circular A-87 for State, local, and Indian tribal governments), 2 CFR part 230 (OMB Circular A-122 for non-profit organizations other than institutions of higher education, hospitals or organizations named in OMB Circular A-122 as not subject to such Circular), and 2 CFR part 220 (OMB Circular A-21 for educational institutions); and
(2)
OMB Circular A-133 for Single Audit Act requirements for States, local governments, and non-profit organizations and the Compliance Supplement, as appropriate.
(c) Priority of payments on defaulted RLF loans.
When an RLF Recipient receives proceeds on a defaulted RLF loan that is not subject to liquidation pursuant to § 307.20, such proceeds shall be applied in the following order of priority: