Starting in the spring of 2009, RSF began hosting periodic gatherings to create greater transparency and connection between investors and borrowers in our social enterprise loan program. The theme of these meetings was interest rates—how much Social Investment Fund investors earn and the interest that borrowers must pay on their loans. As of October 1, 2009, RSF officially made these meetings part of its process for determining the interest rate by establishing a customized rate termed “RSF Prime”.
Working together, the community contributes their insight to assist RSF in setting a price that meets the needs of everyone. We hold quarterly meetings around the U.S. and online with representatives of our three stakeholder groups—investors, borrowers and staff. The meetings 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.
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