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Big investments boost RCAC Loan Fund

July 6, 2009

West Sacramento, Calif. — Rural Community Assistance Corporation (RCAC) recently received investments from Calvert Foundation and an anonymous investor, totaling $1.5 million.

Through the recently launched California Communities Initiative in partnership with Harrington Investments, Inc., Calvert Foundation invested $1 million in RCAC’s Loan Fund on June 9. Calvert Foundation has invested in RCAC’s Loan Fund since 1997. This is Calvert Foundation’s largest renewal increase to date, bringing its total investment in RCAC to $3.5 million.

Previous Calvert Foundation investments allowed the Loan Fund to make $5.9 million in loans to rural, low-income communities between 1997 and 2008. Because it is a revolving loan fund, when loans are repaid, RCAC can recycle the funds into new projects.

In 2008, RCAC used Calvert Foundation funding to help with site acquisition for an urban self-help housing project in Butte County, California. The same year, Calvert Foundation funds also were used to provide a pre-development loan to the public utility district of an economically-disadvantaged agricultural community for a wastewater disposal improvement project. Additionally, in 2008, the funds helped an affordable housing developer purchase land at a major discount to develop 54 single family self-help units and up to 180 multi-family units in the “Apricot Capitol of the World,” rural Stanislaus County.

In addition to Calvert Foundation investment, an anonymous investor committed a $500,000 three-year investment into RCAC’s Loan Fund. Calvert Foundation manages this investor’s fund, however, it is an independent investor.

“RCAC is very grateful to our long-term supporter, Calvert Foundation and its investment partners for increasing their commitment to RCAC. They understand that every dollar that they invest will be put right to work in our communities. This capital is needed now more than ever,” said Michael Carroll, RCAC Loan Fund director. 

For more information about Calvert Foundation, visit www.calvertfoundation.org. 

Rural Community Assistance Corporation (RCAC) created its Loan Fund in 1988 and was certified as a CDFI in 1996. As of December 31, 2008, RCAC had closed 526 short- and long-term loans which totaled more than $261.5 million and leveraged more than $1.1 billion for rural projects. The Loan Fund provides low-interest loans for affordable housing, community facilities, water and wastewater systems and more. Today, the RCAC Loan Fund is capitalized at more than $66 million.

Founded in 1978, RCAC provides a wide range of community development services for rural and Native American communities, agricultural workers and community-based organizations in 13 Western states. RCAC has strong core services and expertise in housing, environmental infrastructure (water, wastewater and solid waste), leadership training, economic development and financing. To find out more about RCAC and its Loan Fund products, visit www.rcac.org/doc.aspx?82.

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