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RCAC Receives Grant from Starbucks and Opportunity Finance Network’s “Create Jobs for USA” Program
Local CDFI Receives First Round Capital Grant in New Initiative to Spur Job Creation in the US
November 1, 2011
West Sacramento, Calif. – November 1, 2011 – A local community lender today received a $231,000 capital grant from the Create Jobs for USA Fund, a collaboration between Starbucks and Opportunity Finance Network (OFN). The money will help Rural Community Assistance Corporation (RCAC) to create and sustain jobs in western US as part of a national campaign to support small, community businesses.
RCAC is one of just 28 community development financial institutions (CDFIs), in the nation to win a grant in the inaugural funding round. The grant was made possible by a $5 million seed contribution from the Starbucks Foundation. The Fund expects to raise tens of millions of dollars more, according to a spokesman, and one hundred percent of these donations will go to CDFIs to finance underserved community businesses, and help create and sustain jobs in underserved communities.
Starting today, The Create Jobs for USA Fund is collecting donations at www.CreateJobsforUSA.organd at nearly 7,000 company-operated Starbucks across the country. 100% of the donations will support organizations like RCAC lending for job creation and retention across the US. CDFIs that are Members of Opportunity Finance Network (OFN) will compete for these funds on a rolling basis.
“Create Jobs for USA is making it possible for Americans who have $5 to share help people who don’t have $5 to spare by creating and retaining jobs in their communities,” explained Mark Pinsky, President and CEO of OFN. “RCAC received this grant because it has demonstrated that it will provide financing that is good for community businesses and good for communities.”
“We’re pleased that Starbucks recognizes the important work that CDFIs are doing, and honored that the Create Jobs for USA Fund has made a first-round grant to us,” said Michael Carroll, Loan Fund director at RCAC. “Create Jobs for USA is unprecedented for the CDFI movement. It is shining a national spotlight on our work and will help RCAC to create and sustain jobs in the West.”
Community development financial institutions (CDFIs) provide financing to community businesses in underserved markets where would-be community business owners may not qualify for credit from traditional lending institutions. Community businesses include small businesses, microenterprises,
nonprofit organizations, commercial real estate developers, and affordable housing developers. All of these community businesses help to create and sustain local jobs.
Community business owners who would like to learn more about the program, or apply for a loan, can get more information at: http://opportunityfinance.net/findacdfi.
RCAC provides technical assistance, training and financing so rural communities achieve their goals and visions.
For more information about RCAC’s Loan Fund, please contact Michael Carroll at mcarroll@rcac.org or visit RCAC's Loan Fund page at www.rcac.org/doc.aspx?82.
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About RCAC
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of September 30, 2011, RCAC closed 622 loans which totaled $323,615,962 and leveraged more than $1.32 billion for projects in rural communities. These loans supported 51,617 individual water and wastewater connections for rural citizens, 11,838 housing units; 1,199,937 feet of community facility space; and created or retained 13,531 jobs. RCAC currently has 137 loans under management, totaling more than $50.5 million. Additionally, RCAC manages 41 loans totaling more than $48 million on behalf of other lenders and investors.
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.
About Opportunity Finance Network
Opportunity Finance Network (OFN) is the national network of Community Development Financial Institutions (CDFIs)—private financial institutions that are 100 percent dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. CDFIs in the OFN network serve all 50 states, and OFN Member CDFIs originated more than $23.2 billion in financing in urban, rural, and Native communities through 2009. More information is available at: www.opportunityfinance.net
About Create Jobs for USA
Starbucks and Opportunity Finance Network have joined forces to help create and sustain jobs in communities across the country. Create Jobs for USA is a bold initiative to spark new financing to community businesses so they can hire and preserve jobs. Learn more or donate now at: http://www.createjobsforusa.org/
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