West Sacramento, Calif. — In the quarter ending December 31, 2014, Rural Community Assistance Corporation (RCAC) closed 20 loans totaling more than $5.5 million to assist rural communities in Alaska, Arizona, California, Idaho, Nevada, New Mexico, and Washington for community development projects.
Boulder City Hospital (BCH) in Boulder City, Nevada – RCAC loaned BCH $2.4 million for long term financing for its recent remodel, which added space, reopened its surgical program and provided two new inpatient services – geriatric behavioral medicine and acute rehabilitation. RCAC also provided the hospital with a $16.3 million construction loan, which was repaid in December and closed the permanent financing from RCAC and USDA. RCAC’s loan made a significant impact in modernizing the facility to nearly twice its original size and generated nearly 300 new construction jobs during the 18 month construction period. The hospital estimates that the expansion of its services and programs created approximately 71 positions to meet the needs of 27,000 elderly patients.
NEXT Awards – RCAC was the recipient of $2 million in loans and grants from the Wells Fargo NEXT Awards for Opportunity Finance, to expand its Development Solutions initiative. The Development Solutions unit supports local developers to fill a critical gap for affordable multi-family housing developments in underserved rural and Native communities in 13 western states. RCAC plans to use the funds to complete $74 million worth of construction during the next two years.
In December, Wells Fargo also separately renewed its long term $1 million investment with RCAC and increased the investment to $2 million for the next 10 years.
The Loan Fund also welcomed a new investment of $250,000 from the Sisters of the Holy Names of Jesus and Mary to be used for all of its lending programs.
“RCAC is very appreciative of our long term investment partners, particularly Wells Fargo Bank, and we are also happy to welcome a brand new partner in the Sisters of the Holy Names. All investors make our critical work possible,” said Michael Carroll, RCAC’s Lending and Housing director.
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of Dec. 31, 2014, RCAC closed 759 loans which totaled $415,553,806 and leveraged more than $1.56 billion for projects in rural communities. These loans supported 69,125 individual water and wastewater connections for rural citizens; 12,669 housing units; 6,746,168 feet of community facility space; and created or retained 15,585 jobs. RCAC currently has 173 loans under management, totaling more than $59.7 million. Additionally, RCAC manages 44 loans totaling more than $40.9 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.