Where: Paso Robles, California
Problem: Rural communities need economic development projects to stay vibrant, healthy and enduring.
Solution: RCAC’s Loan Fund provides financing for a Paso Robles mixed-use development project.

Northern California Community Loan Fund (NCCLF) committed a $4 million construction and term loan to Paso Robles Spring Street LLC (PRSS) in connection with a New Markets Tax Credit (NMTC) mixed commercial/residential use project including a grocery store to be located in Paso Robles, San Luis Obispo County. The low-income neighborhood lacked access to fresh and healthy food for its residents. The loan exceeded the NCCLF loan limits, so RCAC agreed to be a 50 percent participant in to the loan, providing $2 million in funding.

The NCCLF/RCAC financing, together with investments associated with the New Markets Tax Credit Program and owners’ equity of $1.9 million, will allow PRSS to complete the $5.9 million project, which is projected to create 40 – 45 new jobs and provide housing for 20 households in an underserved low-income Latino neighborhood. When completed, the project will consist of two buildings with more than 21,000 square feet of retail space. The primary tenant will be the grocery store. In addition, there will be total of 20 apartment units on the second floor of the buildings. The apartments will be affordable to households at 80 percent of the Area Median Income.

The project has received support from Paso Robles Chamber of Commerce, the San Luis Obispo County Board of Supervisors, Paso Robles Housing Authority and the Hispanic Business Association.

RCAC leverages funds from the U.S. Treasury CDFI Fund and U.S. Department of Agriculture Intermediary Relending Program with private capital to provide critical financing to economic development projects like the Paso Robles Spring Street project.