West Sacramento, Calif. — In the quarter ending September 30, Rural Community Assistance Corporation (RCAC) closed nine loans amounting to more than $1.5 million so that rural communities in California and Washington could improve their infrastructure.
One of the loans, to the White Bluff Water Association of Pasco, Wash., in the amount of $212,080, went to replace the existing main water supply line, some distribution lines, meters and valves. The RCAC loan is particularly significant, in light of the fact that the Association, midway through repairs already undertaken beforehand, had just been denied a bank loan it expected to receive. The water system serves the town school, as well as a temporary farmworker housing community.
The largest loan this quarter was for a revolving line of credit in the amount of $874,300 toward environmental construction. The recipient, Harbor View Mutual Water Company near Kelseyville in Lake County, California, will use the funds to provide interim financing for California Department of Public Health funds disbursements so that timely payments can be made to the project contractor and engineer during improvements to correct water treatment deficiencies.
“RCAC’s Loan Fund exists to fill financing gaps not met by the market and we are happy to help rural communities like Pasco and Harbor View to complete vital infrastructure projects,” said Michael Carroll RCAC’s Loan Fund director.
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of Sept. 30, 2014, RCAC closed 739 loans which totaled $410,042,553 and leveraged more than $1.5 billion for projects in rural communities. These loans supported 64,648 individual water and wastewater connections for rural citizens, 12,615 housing units; 6,648,352 feet of community facility space; and created or retained 14,762 jobs. RCAC currently has 160 loans under management, totaling more than $61.7 million. Additionally, RCAC manages 48 loans totaling more than $51.6 million on behalf of other lenders and investors.
In FY14, RCAC closed 36 loans which totaled $12,765,499 in nine states. These loans supported 1,989 individual water and wastewater connections for rural citizens, 300 housing units; 3,620,027 feet of community facility space; and created or retained 273 jobs.
Founded in 1978, RCAC provides a wide range of community development services for rural and Native American communities and community-based organizations in 13 western states and other Pacific Islands. RCAC has strong core services and expertise in housing, environmental infrastructure (water, wastewater and solid waste), leadership training, economic development and financing.