RSF’s First Annual Borrower Gathering

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August 24, 2009

By Ted Levinson

Steiner wrote that in the acts of lending and borrowing “human mutuality or ‘give and take’ enters the economic process in a striking way.”  On July 24th, 15 RSF borrowers and 11 RSF staff experienced this firsthand in San Francisco.

RSF’s first ever borrower gathering was an eye-opening experience that made apparent a gap in our efforts to foster strong relationships.  Although we experience the “give and take” daily with our borrowers, until this July meeting we have done little to foster that same human mutuality between our borrowers.  We have been missing out.

The day-long meeting revealed personal connections, business opportunities, and shared challenges amongst a fair trade tea company (Numi Tea), a performance arts center (Napa Valley Opera House), a gluten-free cracker company (Mary’s Gone Crackers) and  a major network of innovators (Bioneers).  Jeff Mendelsohn from New Leaf Paper left the meeting with a prospective customer for his recycled papers and Robin Brown of Erbaviva may have a new outlet for his line of organic body lotions.  This provided a glimpse into the world of possibilities that could result from our whole community of borrowers (upwards of 80 organizations) connecting with each other.

In my mind, Napa Valley Opera House board member Bob Muh provided the best concrete suggestion for nurturing and expanding these connections amongst borrowers.  He proposed an online platform for borrowers to “give and take” between themselves.  In a twist that perfectly reflects RSF’s spirit, Bob proposed that all the borrowers offer what they can give, rather than what they want.  We’ll be working on putting this valuable idea into action in the coming months.

Steiner’s “human mutuality” ran deeper than simply the business connections that were formed.  There were also lengthy discussions about various issues that we all face, including one in particular: social impact.  Our borrowers share a commitment to deep social impact, and we spent a good portion of the day talking about how to foster and measure this amorphous concept.

There’s no doubt that social impact and financial health are often in conflict.  The most environmentally-friendly packaging is oftentimes the most expensive choice, just as a refusal to compromise on the treatment of workers throughout a supply chain may very well mean a compromise on sales growth.  Nonprofits need to balance the goal of their mission and the path they follow to get there as well.  Hearing our borrowers struggle with this challenge will influence our underwriting moving forward.

Stepping back from the agenda of our gathering, it is worth reflecting on just how unusual and refreshing it was to convene a room full of borrowers with their lender.  I imagine this is a rare event outside of a class-action lawsuit (and much more pleasant).  For me, the day was a tangible example of how RSF is transforming the way the world thinks of and works with money.  The “give and take” bond between a buyer and a seller or between a lender and a borrower is an obvious one.  Less apparent and less mentioned, but no less meaningful, are the bonds that we can promote between our borrowers.

Ted Levinson is Senior Lending Manager at RSF Social Finance.

• Published by Ted Levinson
• Categories: Lending, RSF Board & Staff, Social Finance, Social Investment Fund, Steiner
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