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Rural communities benefit through RCAC low-interest loans

August 10, 2009

Contact: Victoire Chochezi at 916/447-9832 ext. 1057 or via email at vchochezi@rcac.org

West Sacramento, Calif. — In its third quarter ending June 30, RCAC continued to make 2009 Fiscal Year loans instrumental to improving conditions in rural communities. This quarter, RCAC lent nearly $9.5 million to rural communities in Alaska, California, Nevada, New Mexico and Utah to finance housing, community facilities and water/wastewater infrastructure projects. Projects include predevelopment costs for water and wastewater system improvements, land acquisition and site development for mutual self-help housing, construction of a rural health clinic in Alaska and infrastructure rehabilitation of a mobile home park in Yolo County, California. 

RCAC’s Loan Fund has increased its lending each quarter for this fiscal year. In the first quarter, RCAC lent nearly $6 million to rural communities in the West. In the second quarter, RCAC’s lending slowed to $622,357. With this quarter’s lending rebound, the total for the fiscal year thus far is nearly $16 million.

“In addition to our lending activity, the Loan Fund was successful in raising more than $4 million in new lending capital during the 3rd quarter. Despite the tightening of credit availability in the market in general, RCAC is eager to fund eligible projects in the rural West,” said Michael Carroll, RCAC Loan Fund director.
 
Today, the RCAC Loan Fund is capitalized at more than $68 million. RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of June 30, RCAC has closed 536 short- and long-term loans which total $267.5 million and leveraged more than $1.1 billion for rural projects. These loans supported 27,159 individual water and wastewater connections for rural citizens; 10,849 housing units; and 823,063 square feet of community facility space.

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's Loan Fund products, visit click here.

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