RSF provides loans to nonprofits and for-profits with a commitment to creating long-term beneficial change.
Quarterly interest rates for loans made through RSF’s social enterprise loan 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 4.25% revenue share used to fund RSF’s operations. It is a base rate and may be risk-adjusted.
RSF Prime is set through a unique aspect of the loan program, the Community Pricing Gatherings. Working together, the community contributes their insight to assist RSF in setting a price that meets the needs of everyone. The meetings are held around the U.S. and online with representatives of our three stakeholder groups—investors, borrowers, and RSF staff—and are an opportunity to learn about each other, discuss what rates will best meet the needs of all stakeholders and to make recommendations for raising or lowering the interest rate. We believe this methodology fits better with our mission to create financial relationships that are direct, transparent, and personal.