Revolving Loan Fund Program Changes and General Updates to PWEDA Regulations
Through this notice of proposed rulemaking (``NPRM''), the Economic Development Administration (``EDA''), U.S. Department of Commerce (``DOC''), proposes and requests comments on updates to the agency's regulations implementing the Public Works and Economic Development Act of 1965, as amended (``PWEDA''). In particular, through this NPRM EDA is proposing important changes to the regulations governing the Revolving Loan Fund (``RLF'') program that are intended to reflect current best practices and strengthen EDA's efforts to evaluate, monitor, and improve RLF performance by establishing the Risk Analysis System, a risk-based management framework, to evaluate and manage the RLF program. The proposed Risk Analysis System is modeled on the Uniform Financial Institutions Rating System, commonly known as the capital adequacy, assets, management capability, earnings, liquidity, and sensitivity (``CAMELS'') rating system, which has been used since 1979 to assess financial institutions on a uniform basis and to identify those in need of additional attention. EDA also proposes to reorganize the RLF regulations to improve their readability and clarify the requirements that apply to the distinct phases of an RLF award. In addition, EDA proposes specific changes to RLF requirements to make RLF awards more efficient for Recipients to administer and EDA to monitor. In addition, through this NPRM EDA proposes important, but less comprehensive updates to other parts of its regulations, including revising definitions, replacing references to superseded regulations to reflect the promulgation of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR part 200) (``Uniform Guidance''), streamlining the provisions that outline EDA's application process, and clarifying EDA's property management regulations.