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RCAC Loan Fund receives $2 million Capital Magnet Award

October 15, 2010

U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund  announced yesterday that it awarded RCAC a $2 million grant from the fund’s inaugural Capital Magnet Fund Program. CDFI received 230 applications and made awards to 23 organizations totaling $80 million.

Michael Carroll, RCAC Loan Fund director was on-hand to receive a big check at an event held in Oakland, California to celebrate all the awardees. At the event, Congresswoman Barbara Lee expressed excitement about the awards and the positive impact they will have on affordable housing development.

Morgan Stanley Bank committed to a two-to-one investment match into the RCAC Loan Fund, so the $2 million will become $6 million. That is, Morgan Stanley will lend RCAC $2 for every $1 it received from the Magnet Fund. 

Stan Keasling, RCAC chief executive officer commented, “We are thrilled to receive this award from the brand new Capital Magnet Fund. RCAC will leverage the funding with private capital to provide financing for badly needed affordable housing in rural communities.” Priority will be given to projects located in communities hardest hit by the foreclosure crisis and those that serve the lowest income groups.

In addition, up to a quarter of the funds can be used for community facilities, such as charter schools, clinics, and child care centers, to serve these affordable housing communities. These projects would be part of a rural community revitalization plan.

RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of September 30, 2010, RCAC closed 584 loans which totaled $300,654,570 and leveraged more than $1.2 billion for projects in rural communities. These loans supported 46,675 individual water and wastewater connections for rural citizens, 11,378 housing units and 1,149,471 feet of community facility space. These loans created or retained 13,296 jobs. RCAC currently has 141 loans under management, totaling more than $47 million. Additionally, RCAC manages 45 loans totaling $50,898,112 on behalf of other lenders and investors. The RCAC Loan Fund is capitalized at more than $68 million with investments from foundations, religious organizations, banking institutions and government entities.

In FY 10, RCAC loans supported 9,100 individual water and wastewater connections for rural citizens, 367 housing units and 258,477 feet of community facility space. Additionally, RCAC loans in FY 10 created or retained 332 jobs.

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. Learn more about RCAC's Loan Fund products.

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