West Sacramento, Calif. — Rural Community Assistance Corporation (RCAC)’s Loan Fund received a $1 million 30-year low-interest loan from the U.S. Department of Agriculture Rural Development. This loan, made through the department’s Intermediary Relending Program (IRP), will ensure that RCAC helps small high-need communities address their essential infrastructure needs.
Rural communities often lack the resources necessary to meet application requirements for federal loans and grants to improve their infrastructure, particularly their water systems. Even preliminary engineering and other predevelopment expenses necessary to qualify for federal loans and grants are prohibitive for these communities.
The IRP provides 1 percent low-interest loans to local intermediaries – in this case, RCAC – that relend to businesses to improve economic conditions and create jobs in rural communities. RCAC has received these loans, which are blended with other capital, RCAC equity and investments, since 1991. This funding has supported RCAC housing, community facilities, infrastructural improvements and expansion and loans to lenders.
“We are pleased to continue our partnership with USDA Rural Development,” said Stan Keasling, RCAC chief executive officer. “The IRP funds will ensure that small rural communities can complete critical projects to ensure access to affordable housing and safe drinking water.”
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 the Pacific islands. RCAC provides a broad range of community and economic development services and lending to support local efforts. About RCAC
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