Each REDG Intermediary must adopt a Rural Development-approved plan that specifies that:
- (a) The initial loan made from the Fund will be at zero percent interest and have a maximum term of 10 years;
- (b) Loans made from loan repayments may carry an interest rate less than, or equal to, the prevailing prime rate. The Intermediary determines repayment terms and security arrangements on these loans.
- (c) Loans made from repayments of REDG loans must be for eligible Program purposes;
- (d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions; and
- (e) No changes will be made to a Rural Development-approved Revolving Loan Fund Plan without the prior written approval of Rural Development.