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RCAC Loan Fund lends more than $9.4 million in rural communities
April 16, 2013
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West Sacramento, Calif. — In its last two quarters, ending March 31, RCAC
lent more than $9.4 million to rural communities in California, Arizona,
Colorado, Hawaii, New Mexico and Nevada to finance important community
projects. RCAC closed 24 loans, which leveraged $33,248,033 and supported 2,588
individual water and wastewater connections for rural residents; 86 housing
units; 16,732 feet of community facility space; and created or retained 132
jobs.
Since Oct. 1, 2012, RCAC made 17 environmental infrastructure and three
affordable housing loans; three operating loans to small businesses and a loan
to a medical nonprofit organization.
RCAC’s household water well system loan program provides loans up to $11,000
at 1 percent for 20 years to low-income rural residents in California, Colorado
and Utah to construct, refurbish or replace their household water well system.
USDA Rural Development granted RCAC $150,000 to administer the program. In the
last two quarters, the program provided 11 loans to homeowners.
RCAC also continues to make much-needed loans to nonprofit affordable
housing developers. For example, RCAC’s $4 million construction loan for
Mohouli Senior housing project provided gap financing for 60 senior living
multi-family units developed by Hawaii Island Community Development Corporation
in Hilo, Hawaii.
Small businesses are also receiving support from RCAC’s loan fund. Hanford
House Inn, a bed and breakfast in Sutter Creek, California, received a $2.4
million loan to add rooms to its existing facility and expand its dining room
to a full-service restaurant. This expansion will allow Hanford House Inn to
increase revenue and add jobs to the local economy.
“In the last two
quarters, RCAC continued to deliver vital capital to rural communities throughout
the west. Special thanks to our investors, including those who are new or
renewed or increased their investment during this period,” said Michael Carroll, RCAC Loan Fund director.
RCAC fiscal year 2013
new Loan Fund investors include California United Bank, which provided a
$1 million loan; and JP Morgan Chase Bank, which awarded RCAC’s Loan Fund a $1
million grant. Other investors renewed or increased investments with RCAC during
the last six months include Pacific Rim Bank of Hawaii, Trinity Health
Corporation, Saint Joseph Health System and Dominican Sisters of Hope and
Community Economics, Opportunity Finance Network, USDA Rural Utilities Service
and the US Treasury CDFI Fund.
RCAC created its Loan Fund in 1988 and was later certified
as a CDFI. As of March 31, 2013, RCAC closed 682 loans which totaled
$365,190,420 and leveraged more than $1.46 billion for projects in rural
communities. These loans supported 60,335 individual water and wastewater
connections for rural citizens, 12,219 housing units; 2,893,169 feet of
community facility space; and created or retained 14,071 jobs. RCAC currently
has 149 loans under management, totaling more than $48.2 million. Additionally,
RCAC manages 40 loans totaling more than $41.2 million on behalf of other
lenders and investors.
In fiscal year 2012, RCAC closed 36 loans which totaled
$32,139,221 in eight states. These loans supported 6,130 individual water and
wastewater connections for rural citizens, 295 housing units; 1,674,000 feet of
community facility space; and created or retained 409 jobs.
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