Starting in the spring of 2009, RSF began hosting periodic gatherings to create greater transparency and connection between investors and borrowers in our social enterprise loan program. The theme of these meetings was interest rates—how much Social Investment Fund investors earn and the interest that borrowers must pay on their loans. As of October 1, 2009, RSF officially made these meetings part of its process for determining the interest rate by establishing a customized rate termed “RSF Prime”.

Working together, the community contributes their insight to assist RSF in setting a price that meets the needs of everyone. On a quarterly basis, we survey representatives of three stakeholder groups—investors, borrowers and staff—to learn about the forces impacting their work and investment decisions. This survey gives our stakeholders the opportunity to share feedback about what rates will best meet the needs of all stakeholders and recommendations for raising or lowering the interest rate. We take these responses into account when determining the RSF Prime rate.

We also hold Quarterly Community Gatherings with the same stakeholders to announce the RSF Prime rate and give borrowers and investors the opportunity to connect around shared values and impact. We believe this methodology fits better with our mission to create financial relationships that are direct, transparent and personal.