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Clean energy for EU islands

Revolving loan funds

Finance Objective(s)

Project implementation


Revolving loan funds (RLFs) are pools of capital from which loans can be made for clean energy projects, As the loans get reimbursed, the capital is then reloaned for another project. State and local governments can establish RLFs to support both their own energy upgrades (i.e., internal), and those in private sector (i.e., external).

A revolving loan fund provides access to a flexible source of capital that can be used in combination with more conventional sources. Often, the RLF is a bridge between the amount the borrower can obtain on the private market and the amount needed to start or sustain a business. For example, a borrower may obtain 60 to 80 percent of project financing from other sources.

Who can apply

State and local governments can set up RLFs, with borrowers (e.g. citizens and businesses) applying.