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Interest Rate Changes

Following our Community Pricing Gathering in March 2020, we made the decision to change our interest rates to support the enterprises in our loan portfolio during the early stages of the pandemic. We decreased the Social Investment Fund investor rate so we could decrease RSF Prime, the loan base rate, and set aside funds to support borrowers, referred to as the community response share. Read about it here.

Since then, we have revisited the changes each quarter. In March 2021 we made another decrease to the investor rate and RSF Prime.

At the December 2021 Community Pricing Gathering, investors, borrowers, and RSF staff discussed what would be best for all stakeholders as we move into 2022. With the challenges and unknowns related to COVID-19 continuing, we want to ensure we’re supporting our clients as best we can. The recommendation was to discontinue the community response share so that we can further decrease the RSF Prime rate for borrowers. There was an additional recommendation to offer an increased rate to investors.

The internal RSF Pricing Committee discussed the recommendations along with additional insights from our broader investor and borrower community and consideration of current market conditions. The committee decided on the following changes effective January 1, 2022:

  • Discontinue the 0.25% community response share
  • Increase the Social Investment Fund investor rate by 0.10% from 0.25% to 0.35%
  • Decrease RSF Prime by 0.15% to 4.60% from the previous 4.75%
  • RSF’s revenue share remains unchanged at 4.25%

We host Community Pricing Gatherings and set our own prime rate to make visible the real interconnectedness in our economic relationships. We are grateful how investors and borrowers show up every quarter to engage in conversation about everyone’s needs and provide input on the interest rates.

Learn more about our Community Pricing Gatherings here.

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