Since 1984, RSF has made over $400 million in loans to social enterprises. We’re the lender of choice for those seeking a values-aligned partner because of our expertise, ability to structure loans that truly meet enterprises’ needs, and commitment to direct, transparent and personal relationships. When you receive a loan from RSF, you join a community of like-minded individuals and organizations. The loan fund is made possible by over 1600 investors who are aligning their money with their values.
RSF reviews enterprise qualifications with a unique perspective. We want to support revolutionary, forward-thinking, and transformative enterprises. We’re interested in organizations that put mission first.
We provide funding to social enterprises in the U.S. and Canada that are working to create long-term social and ecological benefit. Our broad areas of expertise are food & agriculture, education & the arts, and ecological stewardship, and we’re open to working in other related fields.
RSF serves social enterprises that meet these general criteria:
Committed to creating beneficial change
Incorporated in the U.S. or Canada
Needs range from $200,000 to $5 million
Annual revenue of $1 million plus
Three or more years of operating history
Strong collateral, which may include pledges or guarantees
Profitable, or can demonstrate a path to profitability in 12 months
Excellent history of repayment on debt
We offer mortgage loans, construction loans, equipment loans, and working capital lines of credit.
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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 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.
| Q1 | Q2 | Q3 | Q4 | |
| 2018 | 5.00% | 5.25% | 5.25% | – |
| 2017 | 5.00% | 5.00% | 5.00% | 5.00% |
| 2016 | 4.75% | 4.75% | 4.75% | 4.75% |
When we realized we needed additional funding to launch several new products, we approached several banks—and were declined. Not at RSF. They immediately understood the uniqueness of our business model and our funding needs.
The loan from RSF made complete sense for us. We’ve always valued working with a mission-aligned financing partner, and it’s thrilling to be a participant in the avant-garde of social finance. We applaud RSF for creating a model that truly enables socially responsible companies to pursue their mission and thereby achieve a positive impact on communities and the environment all along the value chain.
We are a women-owned organic produce distributor in San Francisco, the oldest in the country. Once we made the decision to expand our operations, we needed some creative financial partners to realize our vision. RSF’s integrated capital approach was key to growing our warehouse space.
The vision and mission of RSF deeply resonated with our board, and we felt like the values that RSF stands for were ones we could completely appreciate.
Absolutely! Non-profit organizations are welcome to apply for financing. Our only requirement is that the non-profit must fundraise a portion of its revenues through earned income (e.g. sales or contracts).
We require a minimum of three years in operation for financing, and thus do not fund start-ups. For capital to get your social enterprise off the ground, we recommend reaching out to friends and family, or an angel investor network in your area.
Our loan due diligence process is thorough. It includes a site visit, a detailed financial analysis, a mission-alignment analysis, a review of your company or non-profit’s operations, a sector evaluation, and an assessment of collateral for adequate security.
Senior Associate, Social Enterprise Lending
casey.johnson@rsfsocialfinance.org
415.561.6986