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RCAC’s Loan Fund is a financial resource for rural communities. We fill financing gaps and serve those traditionally neglected by conventional markets. Our loan fund offers a comprehensive array of loan products for affordable housing development, environmental infrastructure, community facilities and businesses in rural locations. Each RCAC loan product is designed to meet the unique loan structure needs of the applicant.
RCAC also is a certified Community Development Financial Institution (CDFI). In June 2012, RCAC received a new CARS™ rating of AAA+2, an improvement on its previous AA+2 rating from 2010. The rating is based on a comprehensive Opportunity Finance Network (OFN) review of the RCAC Loan Fund and the entire RCAC organization. RCAC’s AAA rating indicates that CARS™ found RCAC has clear mission alignment with strategies, activities and data that guide its programs and planning; and that RCAC uses its resources effectively to benefit its target populations or communities in line with its mission. The “plus” rating recognizes RCAC’s many advocacy and public policy activities. A score of 2 deems a CDFI fundamentally sound, and places RCAC in a select group of financially strong CDFIs.
Eligible applicants to the loan fund are nonprofit organizations, public bodies and tribal governments for affordable housing, community facilities and environmental infrastructure projects. For profit entities and sole proprietorships are eligible for business loans.
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 FY12, 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 million feet of community facility space; and created or retained 409 jobs.
Key points when applying for RCAC project financing:
- RCAC is a “needs lender.” We identify the needs of our client and then structure the financing terms to meet those needs.
- RCAC financed projects must provide a public benefit or, in the case of business loans, must provide employment opportunities.
- The RCAC Loan Fund is a financing partner with other financial institutions, not a competitor. Financing may be solely by RCAC or in partnership with conventional lenders and/or other CDFIs under terms that ensure project feasibility in meeting the mission of the particular loan program.
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