Comment on FR Doc # 2010-11931

On pg 30148 of Federal Register, item 4280.311 (c), ineligible activities, states revolving loan funds may not be used for administrative costs or expenses. Under 4280.311 (e)(2). The "administrative" notation in the proposed regs states: "The interest earned either on funds in the account (RMRF), or on repayments from microborrowers, may only be used specifically to grow the RMRF, debt service to the Agency, or to help capitalize the LLRF. Interest may not be withdrawn by the microlender for administrative expenses or its own use." Disallowing the use iof interest and fees to fund the operations of the program prevents organizations that do not have tax based funding to support operations from applying for this program and therefore significantly limits potentioanl applicants. This organization has successfully operated Revolving loan fnds since 1989 and have depended on the interest and fees to fund adminisration and to offset loan losses. That system works. This system will not.