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RCAC receives $1.45M CDFI award and closes its third quarter on a high note

August 28, 2012

RCAC received more than $1.45 million as part of the U.S. Department of the Treasury Community Development Financial Institutions (CDFI) Fund awards announced on August 6.

The U.S. Treasury awarded more than $186 million to 210 certified and emerging CDFIs that serve low-income and Native communities.

RCAC’s Loan Fund will use the award to help fill financing gaps and serve those traditionally neglected by conventional markets. The award will expand the Loan Fund’s small business loan program, and promote job creation in rural communities. RCAC’s Loan Fund offers a comprehensive array of loan products for affordable housing development, environmental infrastructure, community facilities and businesses in rural locations.

“We are very pleased to receive this award. The CDFI Fund is a vital capital source for our Loan Fund and for other CDFIs across the country,” said Michael Carroll, RCAC’s Loan Fund director.

Third quarter highlights

In its third quarter, which ended on June 30, the RCAC Loan Fund closed 14 loans totaling $7,483,370 to assist small businesses, affordable housing development and infrastructure improvements in rural communities.

RCAC made five loans for water/wastewater system improvements, five loans for affordable housing, two loans to small businesses, one loan to assist a rural homeowner to have potable water and one community facility loan.

RCAC provided much needed capital for projects, including:

• Feasibility studies, predevelopment costs, and construction for water and wastewater systems in California, Colorado and Idaho.
• 126 units of single family housing in projects in California, Colorado, Hawaii, and Utah.
• Construction of a rural fire station in California.
• Establishment of a dry cleaning business in California which will provide employment to rural residents

Also, during the third quarter, the Loan Fund committed $11.7 million to the Crescent City Harbor District to rebuild its facility, which was destroyed by a tsunami in 2011. This is by far the largest loan RCAC has ever made. RCAC was relying on a partner CDFI to take part of the loan commitment, FEMA repayment of a portion of the loan, and the probability that USDA Rural Development would come through with the loan mentioned in the Last piece of funding for harbor article. The window for construction in the harbor is very short, and RCAC’s commitment allowed construction to start on time. In 18 months, the Harbor District will again be providing critical services to support the fishing fleet that is a vital part of the north coast of California economy.

For more information on RCAC’s Loan Fund >> 

To access the CDFI press release issued by the U. S. Treasury >>

To access a list of the Awardees >> 

Back to Network News August 2012 >>

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