West Sacramento, Calif. — Rural Community Assistance Corporation’s (RCAC) Loan Fund reached a long-awaited milestone this week, announcing $100 million in lending capital.
New investments including $5 million from Bank of America and a $10 million Charles Schwab line of credit brought the Loan Fund to its highest capital level since its creation in 1988. Reaching the $100 million mark has been one of the organization’s longtime goals and demonstrates its steady and continuous growth since the Ford Foundation and Bank of America made initial investments.
This milestone represents an ongoing need and demand to finance projects in low-income, rural communities including affordable housing development, environmental infrastructure, community facilities and small businesses.
“We are very grateful to all of our investment partners for making vital capital available to enable us to serve the rural communities in the West,” said Stanley Keasling, RCAC chief executive officer. “We will continue to use our Loan Fund, together with technical assistance and partnerships with local organizations to address the significant needs for housing, safe drinking water, vital community facilities and jobs.”
With more than 45 investors, the Loan Fund is a resource for rural communities and serves in areas that conventional markets traditionally neglect. RCAC is a certified Community Development Financial Institution (CDFI), with a AAA+2 Aeris rating.
As of March 31, 2016, RCAC had closed 854 loans which totaled $454,865,763 and leveraged more than $1.682 billion for projects in rural communities. These loans supported 73,985 individual water and wastewater connections for rural citizens, 13,050 housing units; 10,271,817 feet of community facility space; and created or retained 16,377 jobs. RCAC currently has 238 loans outstanding totaling more than $69.1 million, and manages 45 loans totaling more than $40.9 million on behalf of other lenders and investors.
Founded in 1978, RCAC provides training, technical and financial resources and advocacy so rural communities can achieve their goals and visions. RCAC serves rural communities in 13 western states and western Pacific islands. Services are available to communities with populations of fewer than 50,000, other nonprofit groups, tribal organizations, farmworkers, colonias and other specific populations. RCAC provides loans, including small business loans, technical and economic development assistance to rural communities and nonprofit organizations in its service region. To find out more about RCAC’s Loan Fund products >>
Michael Carroll, director
RCAC Lending & Housing
(916) 447-9832 ext. 1003