Interest rates for loans made through RSF’s Social Enterprise Lending Program are set on the basis of an independent benchmark called “RSF Prime”. RSF Prime is equivalent to the RSF Social Investment Fund interest rate plus a spread of 4.25% used to fund RSF’s operations. RSF Prime is a base rate and may be risk-adjusted.
How Rates Are Determined
The interest rate for the RSF Social Investment Fund (SIF) is determined and adjusted by RSF on a quarterly basis. This decision is informed by the community of SIF stakeholders – borrowers, investors, and RSF staff – at our Quarterly Pricing Meetings. The feedback provided at the meetings is the basis of decision-making for the Social Investment Fund (SIF) Pricing Committee, which also considers current market rates and macroeconomic conditions. The aim of this approach is to further incorporate the principles of associative economics into our lending process whereby investors and borrowers agree on a mutually beneficial rate that reflects the needs of the entire community.
Pricing meeting locations are determined by how many borrowers and investors we have in a city or region. Meetings have taken place in: the San Francisco Bay Area; Philadelphia; New York; Los Angeles; Washington, DC; Santa Fe; Burlington, VT; and Portland, OR.
The next pricing meeting will be an online gathering in June, 2016.
The current rate for RSF Prime is 4.75%.
RSF Prime rate since inception (Q4 2009)