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91.220(l)(ii)(E)
Income from float-funded activities. The full amount of
income expected to be generated by a float-funded activity
must be shown, whether or not some or all of the income is
expected to be received in a future program year. To assure
that citizens understand the risks inherent in undertaking
float-funded activities, the recipient must specify the
total amount of program income expected to be received and
the month(s) and year(s) that it expects the float-funded
activity to generate such program income. |
The CDBG Float Loan Program will be established to provide short-term
financial assistance for community development, housing development and
economic development projects in Burlington. Funding for the program
will come from allocations to other CDBG activities which are not
anticipated to be expended during the term of the float loan. An
absolute pre-condition for any float loan will be an unconditional,
irrevocable Letter of Credit from a lending institution in order to
assure the availability of funding. One specific project has been
targeted for the Float Loan Program:
Burlington Revolving Loan Program
- Benefits businesses, city departments and private nonprofit
organizations
- Short-term financing of business expansion; public
infrastructure and facilities, including the Moran Plant; and
housing and development projects in Burlington
- Projects must meet the underwriting criteria of the Burlington
Revolving Loan Program
Float Loan Allocation:
- Not to exceed $300,000
- Secured by an irrevocable Letter of Credit
- Repayments scheduled to ensure no delay of funding to other
subrecipients
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