Loans

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 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.

RCAC also is a certified Community Development Financial Institution (CDFI). In January 2009, RCAC received a new CARS™ rating of AA+2, an improvement on its previous A+2 rating from 2006. The rating is based on a comprehensive Opportunity Finance Network (OFN) review of the RCAC Loan Fund and the entire RCAC organization. RCAC’s AA 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. The rating was reviewed and confirmed by OFN in January, 2010.

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 now have safe and decent housing and water, wastewater or community facilities.

As of June 30, 2010, RCAC closed 576 loans which totaled $293,097,855 and leveraged more than $1.14 billion for projects in rural communities. These loans supported 30,579 individual water and wastewater connections for rural citizens, 11,356 housing units and 925,568 feet of community facility space.

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.
RCAC financed projects 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 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.