Pasco, Franklin County, WA
A small, volunteer-run water system, in place since 1955, has deteriorated substantially. Aging components needed to be replaced, but a local bank denied financing
RCAC’s Loan Fund steps in with the funds necessary to complete repairs
WBWA had expected to receive funding from a local bank to complete the final repairs to its old and frequently failing water system, but disaster loomed when the loan commitment was rescinded. RCAC stepped in to provide a $212,000 loan to WBWA to cover the final repair costs.
In January 2014, WBWA obtained a proposal to replace its existing mainline. A number of water supply main and distribution lines needed to be replaced. New valves and meters also needed to be installed. The project was broken down into three phases. WBWA completed the first phase with its cash reserves.
WBWA worked with the local bank to obtain financing for the project’s remaining two phases. It was the board’s understanding that an approval had been obtained. With phase two imminent, WBWA attempted to draw on the bank’s commitment, but was informed that the funding had not been approved. On the recommendation of its engineer, WBWA reached out to RCAC.
“It was a welcome relief to find an institution/corporation willing to assist and support rural community water system improvements,” said Patrick Sullivan, WBWA’s board president. “This opportunity to move ahead could not have been realized without the assistance and perseverance of RCAC.”
RCAC’s Loan Fund is a financial resource for rural communities. It fills financing gaps, and serves those traditionally neglected by conventional markets with a comprehensive array of loan products, including for environmental infrastructure.