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RCAC Loan Fund scores high performance rating

CARS™ AAA+2

June 22, 2012

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West Sacramento, Calif. — Rural Community Assistance Corporation (RCAC) recently received an AAA+2 performance rating, placing it in select group of high achieving Community Development Financial Institutions (CDFIs).

The CDFI Assessment and Rating System (CARS™) spent several days conducting an exhaustive review of RCAC operations and impact, a thorough financial analysis, in-depth interviews with the CDFI’s management team and board of directors, and on-site inspection of RCAC’s loan files. Investors and donors who contribute to CDFIs often examine the CARS™ report before committing to an investment. CARS™ conducts high-quality, efficient, and rigorous analyses of organizations’ Impact Performance and Financial Strength and Performance and tracks the results to guide investment decisions.

RCAC’s AAA rating, the highest impact rating that CARS™ bestows, indicates that RCAC has clear mission alignment with strategies, activities and data that guide its programs and planning and RCAC uses its resources effectively to benefit its target populations or communities in line with its mission. It has processes and systems that track outcomes to demonstrate positive changes in the communities it serves.

The plus sign in RCAC’s rating refers to advocacy work. CARS™ examines whether organizations make change an integral strategy component. According to the CARS™ rating system, CDFIs that, “lead initiatives to change government policy to benefit the community development finance industry or disadvantaged people and communities,” are eligible for the plus rating. RCAC’s rating in this category was based on its advocacy and public policy efforts.

The number rating 2 in RCAC’s score is for its financial strength. A CDFI that scores a 2 is deemed fundamentally sound. CARS™ notes that CDFIs in this group, “exhibit solid financial strength, performance and risk management.”

“We are very pleased that CARS has recognized RCAC’s high standards and the degree of impact our organization has achieved,” said Michael Carroll, RCAC Loan Fund director. “Our partners and investors once again have independent confirmation that we are a solid, high performing organization thanks to the CARS rating,” Carroll added.

RCAC was certified as a CDFI in 1996 and operates a $69 million Loan Fund that provides low-interest loans for affordable housing, community facilities, water and wastewater systems and small businesses in California. Each year the fund provides scores of loans to organizations and small communities that often cannot acquire financing through traditional lending institutions.

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