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RCAC Loan Fund leverages more than $1 billion

By June Otow, RCAC corporate development advisor 

Community Development Financial Institutions (CDFIs) are financing the economy’s underserved sectors with integrity and compassion in spite of limited lending capital. Profit making, but not profit maximizing, CDFIs have demonstrated creativity, innovation and responsibility within the financing arena with very little fanfare.

Approximately 1,000 CDFIs nationwide provide financing for projects and small businesses in low-wealth communities. Primarily using capital from private sources (less than 10 percent of CDFI lending capital is from government sources), CDFIs manage more than $23 billion in assets.

Recent statistics (fiscal year 2005) reflect the impact of the CDFI industry. The network closed $4.3 billion in loans, financed more than 52,000 affordable housing units and more than 9,000 small businesses, and created or retained more than 39,000 jobs.

RCAC created its Loan Fund in 1988 and became a CDFI in 1996 when the U.S. Department of the Treasury first began certifying CDFIs. RCAC’s Loan Fund has grown along with the industry as a whole and, today, it has more than $65 million in lending capital. As of September 30, 2008, RCAC has closed 517 short- and long-term loans, which totaled more than $257 million and leveraged more than $1 billion for rural projects in the West. Between Oct. 1, 2007 and Sept. 30, 2008, the loan fund closed 55 loans (an all- time record) totaling $41,723,000. Loans were closed in 10 of the 13 states in RCAC’s region to 46 different borrowers.

RCAC Fiscal Year 2008 Borrowers included:

• Ainakea Senior Residences, HI
• Anderson Valley Health Center, CA
• Brooktrails Township Community Services District, CA
• Casa Del Sol Mobile Home Corporation, CA
• Cebolla Mutual Domestic Water Consumers’ and Sewage Works Association, NM
• City of Bayard, NM
• City of Loyalton, CA
• City of Rocky Ford Water Enterprise, CO
• City of Royal City, WA
• Color Country Community Housing, UT
• Community Housing Improvement Program, CA
• Community Housing Improvement Program, CA
• Community Services of Arizona
• Coyote Valley Mutual Water Company, CA
• EMAAH Land LLC, MT
• Habitat for Humanity, HI
• Hawaii Island Community Development Corporation, HI
• Housing America Corporation, AZ
• Hydro Irrigation District #9, WA
• Itom A`e LP, AZ
• Juneau Family Birth Center, AK
• Louviers Mutual Service Company, CO
• Makoshika Estates, MT
• Maxwell Public Utility District, CA
• Mountain Orchard Mutual Domestic Water Users Association, NM
• Mountainlands Community Housing Trust, UT
• Native Village of Perryville, AK
• OPAL CommunityLand Trust, WA
• Owners Association of Oak Meadows Estates, CO
• Plainview Mutual Water Company, CA
• Progress House, CA
• Russian River County Water District, CA
• Self-Help Enterprises, CA
• Self-Help Home Improvement Project, CA
• Sierra Recovery Center, CA
• Snowline Hospice of El Dorado County, CA
• South County Housing Corporation, CA
• South County Land Corporation, CA
• Strathmore Public Utility District, CA
• Sunrise Shore Mutual Water Company, CA
• Three Rivers Community Services District, CA
• Timberlake Village Limited Partnership, ID
• Town of Oak Creek Wastewater Enterprise, CO
• United Native Housing Development Corporation, CA
• Upper Des Montes Mutual Domestic Water Consumers Association, NM
• Valley Community for Recycling Solutions, AK

Vast improvements to these communities were made possible through RCAC’s Loan Fund, which typically offers lower interest rates and finances projects and gaps that other sources often will not.

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