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RCAC’s new small business program creates jobs with first loan

March 5, 2012

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West Sacramento, Calif. — RCAC recently launched a new small business lending program, and its first loan created five new jobs in rural California.

RCAC received a $4.3 million loan from the U.S. Treasury Small Business Lending Fund and a $231,000 capital grant from the Create Jobs for USA Fund, a collaboration between Starbucks and Opportunity Finance Network; both of these sources will be used as lending capital for RCAC’s small business loans. RCAC will make direct loans to eligible businesses in California; participate in a California state guarantee program; and partner with Valley Small Business Development Corporation, an experienced small business CDFI lender in California’s Central Valley, for loans in that region.

The Small Business Loan Program offers loans for a variety of business financing needs including working capital and lines of credit as well as long term loans for acquisition of real estate and equipment. Most businesses that generate employment and are located in communities of 50,000 or less populations can be considered for loans under this new program.

RCAC’s first $150,000 small business loan was to a family-owned fencing company in Northern California. The loan provided the company the working capital it needed to bid on larger jobs and add employees. The fence company has been in business for more than 20 years. After two of its competitors went out of business, demand for business grew faster than the company’s cash on hand and staffing. The small business owner noted that the company finished the year booked out two to three weeks for all five of its fencing crews. In addition, the business added five employees (one permanent and four temporary) and completed several large-scale jobs that would not have been possible without RCAC’s working capital loan. The company will add additional jobs as demand for its services grows.

For more information contact RCAC loan officers, Cynthia Elliott (Central/Southern California) or John Weidemaier (Northern California) >>

RCAC created its Loan Fund in 1988 and was later certified as a CDFI. RCAC finances affordable housing, environmental infrastructure and community facility projects; and now finances small businesses.

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 www.rcac.org/doc.aspx?82.

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