Social Enterprise Lending
Since 1984, RSF has made over $275 million in loans to non-profit and for-profit organizations. RSF is the lender of choice for social enterprises who seek a mission-aligned financing partner. Working with RSF is unique for several reasons:
- From initial contact to underwriting to funding, the goal is to establish a trusting relationship— one that is direct, transparent, and personal.
- RSF has more flexibility with structuring loans and considering risk than regulated banks. This allows us to provide funding to organizations that are not yet qualified for bank financing.
- RSF’s Quarterly Pricing Meetings provide an opportunity for borrowers to meet with RSF staff and investors to discuss and make recommendations for changes to the interest rate.
Borrowers not only receive financing to meet their capital needs; through a close relationship with RSF, each becomes part of a larger community that is changing the way the world works with money.
The RSF Social Enterprise Lending Program offers mortgage loans, construction loans, equipment loans, and working capital lines of credit.
RSF serves social enterprises that meet these general criteria:
- Mission that addresses one of RSF’s three focus areas – Food & Agriculture, Education & the Arts, Ecological Stewardship;
- Incorporated in the US or Canada;
- Strong collateral (which may include pledge or guarantee communities);
- Excellent history of repayment (both interest and principal) on any existing debt;
- Funding needs ranging from $200,000 to $5 million ($100,000+ for arts organizations);
- 3 or more years of operating history;
- Enterprise is profitable, or can demonstrate a clear path to profitability in 12 months;
- Annual revenue of $1 million or greater preferred ($500,000 for arts organizations).
If your enterprise meets the above criteria, please visit our focus area pages for more information:
Loan Pricing: RSF Prime
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.
The rate for RSF Prime for 2014 Q3: 4.50%
Please click here for more information about RSF Prime.