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Commerce Tightens Controls on Business Loans

WASHINGTON (CN) - The Commerce Department's Economic Development Administration is changing its compliance requirements for the Revolving Loan Fund Program, in accordance with an Office of Inspector General's audit report, which found significant oversight problems in the program.

The program supplies small businesses and entrepreneurs with the gap financing needed to start or expand businesses.

The EDA will switch to a Web-based semi-annual reporting form for the requirement that RLF recipients submit updated RLF Plans at least once every five years. In addition, the agency will peg the minimum interest rate on the loans to commercial interest rates to ensure RLF grantees can lend when commercial interest rates are low.

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