West Sacramento, Calif. — Rural Community Assistance Corporation (RCAC) recently received an AAA+2 performance rating, which places it in a select group of high achieving Community Development Financial Institutions (CDFIs).
The CDFI Aeris Ratings Committee conducted an exhaustive review of RCAC’s operations and impact, a thorough financial analysis, in-depth interviews with the CDFI’s management team and board of directors, and on-site inspection of RCAC’s loan files. Investors and donors who contribute to CDFIs often examine the Aeris report before they commit to an investment. Aeris conducts high-quality, efficient and rigorous analyses of organizations’ Impact Performance and Financial Strength and Performance and tracks the results to guide investment decisions.
RCAC’s AAA rating, the highest impact rating that Aeris bestows, indicates that RCAC has clear mission alignment with strategies, activities and data that guide its programs and planning. RCAC also uses its resources effectively to benefit target populations or communities in line with its mission. It maintains processes and systems that track outcomes to demonstrate positive changes in the communities it serves.
The plus sign in RCAC’s rating refers to advocacy work. Aeris examines whether organizations make change an integral strategy component. According to the Aeris rating system, CDFIs that “lead initiatives to change government policy to benefit the community development finance industry or disadvantaged people and communities,” are eligible for the plus rating. RCAC’s rating in this category is based on its advocacy and public policy efforts.
The number rating 2 in RCAC’s score is for its financial strength. A CDFI that scores a 2 is deemed fundamentally sound. Aeris notes that CDFIs in this group, “exhibit solid financial strength, performance and risk management.”
“We are very pleased that Aeris has recognized RCAC’s high standards and the degree of impact our organization has achieved,” said Michael Carroll, RCAC’s director, Lending & Housing. “Our partners and investors once again have independent confirmation that we are a solid, high performing organization thanks to the Aeris rating,” Carroll added.
RCAC was certified as a CDFI in 1996 and operates a $69 million Loan Fund that provides low-interest loans for affordable housing, community facilities, water and wastewater systems and small businesses in California. Each year the fund provides scores of loans to organizations and small communities that often cannot acquire financing through traditional lending institutions.
Contact: Keli James
RCAC PR communications coordinator