RCAC created the Loan Fund in 1988 with an initial $1 million investment from the Ford Foundation. An additional $1 million loan (later converted to a grant) from Bank of America boosted lending capital. The Loan Fund was later certified as a Community Development Financial Institution (CDFI), and currently has an Aeris rating of 4 Stars AA plus Policy Plus.

The first loan closed on July 1, 1988. The $248,000 affordable housing loan was made to Rural California Housing Corporation to finance the purchase of 16 zoned and finished lots in a subdivision in Oakley, California.

Banks, corporations, foundations, religious organizations, government institutions and others have invested in the Loan Fund, allowing RCAC to lend to rural and low-income borrowers at competitive interest rates.

RCAC provides loans for affordable housing, environmental infrastructure, community facilities and small businesses. RCAC leverages its lending with technical assistance, which assists borrowers to succeed with both loans and projects.

In July 2016, the Loan Fund reached a long-awaited milestone, announcing it had reached $100 million in lending capital with new investments from Bank of America and a Charles Schwab line of credit. As of July 2018, the Loan Fund has more than $128 million in lending capital.

RCAC continues to seek Loan Fund investments in response to an ongoing need and demand to finance projects in low-income, rural communities.

“The loan fund has and will continue to play a vital role in RCAC’s mission to support local groups working to realize their goals and visions. We are excited to celebrate this 30th anniversary of its creation,” said Stanley Keasling, RCAC chief executive officer.

As of the quarter ending March 31, 2018, RCAC had closed 1,000 loans which totaled $519,969,273 and leveraged more than $2.048 billion for projects in rural communities. These loans supported 86,421 individual water and wastewater connections for rural citizens, 13,972 housing units; 10,786,223 feet of community facility space; and created or retained 18,021 jobs. RCAC currently has 305 loans under management, totaling more than $73.3 million. Additionally, RCAC manages 55 loans totaling more than $52.3 million on behalf of other lenders and investors.

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