Brownfields Revolving Loan Fund Series
FLEXIBLE FINANCE TOOLS
FILLING
THE GAP
Flexible ELF Programs Can
Make a Proposal a Reality
The U.S. Environmental Protection Agency (EPA)
provides significant flexibility to its Brownfields
Program's Revolving Loan Fund (RLF) cooperative
agreement recipients (CARs) to negotiate terms
with potential borrowers and subgrantees (or
subrecipients). This flexibility allows CARs to create
enabling conditions for redevelopment of brownfields
sites. CARs can structure their loans to eligible
borrowers for allowable activities in a manner that
is most conducive to local market conditions and
community needs.
Flexibility is a cornerstone of the RLF program and
the program promotes the use of these financial tools:
•	Subgrants—A portion of RLF funds can be used
for subgrants to eligible entities. Subgrants can
be used in combination with loans.
•	Discounted loans—Forgiveness of a portion
of the principal, up to 30%, or a maximum of
$200,000, is allowed for some borrowers.
•	Low or 0% interest loans—below-market
interest rates (even as low as 0%) are
acceptable.
•	Intra-governmental loans—A direct loan can
be given to a branch of a recipient's own
government unit.
•	Taking on extra loan risks—Flexibility with
the type of collateral allowed, including other
properties and certificates of deposit owned by
the borrower. A willingness to accept a lower
debt service coverage ratio by a CAR can seal
the deal.
&EPA
United States
Environmental Protection
Agency
Many CARs take advantage of these flexible
financial tools, individually or as a combination,
to advance cleanup of brownfields sites and spur
redevelopment.
Note: The terms and conditions for each
cooperative agreement (CA) provide more
details about each of these financial tools.
SOUTH CAROLINA
DEPARTMENT OF HEALTH AND
ENVIRONMENTAL CONTROL
The EPA provided $9.48 million in RLF funding
to the South Carolina Department of Health and
Environmental Control (SCDHEC). Projects from
all over South Carolina are eligible for RLF funds,
including those described here. SCDHEC uses the
Catawba Regional Council of Governments as its
RLF fund manager.
Before picture of city maintenance facility and
sewer lift from Lake City Landfill Site Case Study

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Facility removed, landfill covered (in distance)
LAKE CITY LANDFILL SITE
CASE STUDY REPORT
After cleanup, the 1 7-acre landfill site in Lake
City will become a regional park, providing
much-needed open space for the Local
community. Various flexible finance tools
available in the RLF program were used to
bring this project to fruition:
PELZER TEXTILE MILL SITE
CASE STUDY REPORT
The Pelzer Textile Mill site is in the small town of Pelzer,
South Carolina. Pelzer's population is 89, according
to the 2010 census. After cleanup, the building will
become a community center and a museum.
FLORENCE COUNTY/
•	SCDHEC issued a $500,000 RLF loan
at a 1 % interest rate and 10-year term,
taking advantage of a low- or below
market interest rate and loan term
flexibilities.
•	SCDHEC allowed 25% of loan principal
forgiveness after cleanup was
completed. The ability to forgive a
portion of the loan amount helped
finalize the deal. The 25% loan amount
was not forgiven upfront, but was
spread over 10 years to keep the
incentive spread over the project life.
•	Florence County collateralized the loan
with a county-owned office building. The
flexibility in accepting various types of
collateral, at times with higher risks,
helped advance the project.
•	A private foundation provided a
$191,000 grant for eligible cleanup
costs, including the 25% match for the
RLF loan.
•	The project received a $250,000 RLF loan
for a local not-for-profit organization at a 1 %
interest rate and 10-year term to remove
asbestos and lead-based paint from the
building.
•	Anderson County provided repayment
guarantee for the RLF loan by using county
funds. This guarantee ensured
on-time loan repayments,
•	A certificate of deposit from the Anderson
County government was pledged as
loan collateral. This reduced the risk of
loan default.
For more information, contact:
Robert Hodges, hodgesrf@dhec.sc.gov
United States Environmental Protection Agency
Office of Land and Emergency Management (51 05T)
EPA 560-F-1 7-227
October 201 7
www.epa.gov/brownfields

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