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Loans

RCAC’s Loan Fund is a financial resource for rural communities. We fill financing gaps and serve those traditionally neglected by conventional markets. RCAC is a certified Community Development Financial Institution (CDFI) with an AA+2 CARs rating. Our loan fund offers a comprehensive array of products for affordable housing development, environmental infrastructure and community facilities in rural locations. Each RCAC loan product is designed to meet the unique underwriting and structuring needs of nonprofit and local government borrowers.

While the primary borrowers from the loan fund are nonprofit organizations, municipalities, and tribal governments, the ultimate beneficiaries are low- and very-low income rural residents who are given the opportunity to have safe and decent housing, water, wastewater or community facilities.

As of June 30, 2009, with more than $65 million in lending capital, RCAC's Loan Fund had closed 536 loans, which totaled $267,534,142 and leveraged $1,114,544,072 for rural projects. These loans supported 27,159 individual water and wastewater connections for rural citizens, 10,849 housing units for low-income persons and 823,063 square feet of community facility space. This translates to 12,928 jobs created or retained.

Key points when applying for RCAC project financing:

• RCAC is a “needs lender.” We identify the needs of our client and then shape the financing terms to meet those needs.
• Projects financed by RCAC must provide a public benefit. For example, projects that serve low- and very-low income people or populations with restricted access to capital, such as agricultural workers or Native Americans, are eligible.
• The RCAC Loan Fund is a financing partner with other financial institutions, not a competitor. We provide financing along with conventional lenders and other CDFIs under terms that ensure project feasibility and community affordability.