fbpx

RSF Prime: Six Years Later, Here’s How It’s Going

 

color-vortex-webCan you imagine your bank inviting you to come and talk about your interest rate?

I usually open RSF Social Finance’s quarterly pricing meetings with this question. So far, no one has said yes.

That’s understandable. When we decided in late 2009 to abandon LIBOR (a move that turned out to be prescient) and set our own rate for the RSF Social Investment Fund, which we call RSF Prime, that alone was a departure from common practice. What seemed truly radical, though, was our commitment to setting the rate collaboratively, with face-to-face quarterly pricing meetings involving investors, borrowers and RSF staff all playing a significant role in determining the interest rates investors receive and borrowers pay, as well as RSF’s share of the revenue.

Some of our own staff initially thought this was a crazy idea, even given RSF’s history of innovation as a funder of for-profit and nonprofit social enterprises. It still feels radical to new participants. They don’t know quite what they’re sitting down to: the whole system of lending and borrowing becomes visible to them in a way it never has before.

Continue reading on the The Huffington Post.

Join the RSF Community
Invest your values Invest your values

RSF offers an easy way to invest in what’s important to you. Start your fund today with $1,000.

Learn more
Open a giving account Open a giving account

With a Donor Advised Fund, you can give when the timing is right for you and be part of an active community of donors and partners who share your passions.

Learn more
Get funding Get funding

If you’re an entrepreneur creating social or ecological change, apply for a loan to help you further your mission.

Learn more