RIC was designed to create an easy and affordable investment opportunity for a diverse group of mission-aligned investors. RIC members coordinate their investments in alignment with the stated goals, and use the common terms and conditions below as a starting point. Each investor maintains the ability to set unique terms and restrictions in negotiating their investment with RCAC.

Summary of Common Terms and Conditions

Borrower:

Rural Community Assistance Corporation (RCAC), a California-based nonprofit corporation, is a regional intermediary and Community Development Financial Institution (CDFI) that supports rural communities in 13 western states (Alaska, Arizona, California, Colorado, Hawaii and other Pacific islands, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming).

Investors:

Foundations, family offices, private investors, and other entities motivated by the goals of the Collaborative.

Use of Proceeds:

The capital invested in the initiative, more fully described in related legal documents, will provide community development loans that promote the environmental, social and/or economic sustainability of Federally or state recognized American Indian tribes or tribal entities in New Mexico and Arizona. Projects eligible for funding include: energy efficient affordable housing, community infrastructure and facilities, sustainable agriculture, Native-owned social enterprises, and nonprofits working in Native communities.

Term:

Ten-year term. Funds drawn as needed for specific projects. Principal to be repaid at the end of the term.

Interest Rate:

The principal amount drawn and outstanding on the Notes shall bear interest at an amount chosen by each investor, up to a maximum of 2.0% per annum.

Loss Reserve:

Loan Loss Allowance.  RCAC loan fund policies will apply.  RCAC and local investment partners will utilize public loan guarantee programs such as USDA, HUD and BIA, to the extent possible.

Amount:

$250,000 minimum.  No maximum, unless one is set by RCAC.

Intermediary:

RCAC will receive investment capital from investors, conduct day-to-day operations, and lend money to borrowers, in accordance with the investor’s wishes based on the executed note(s). A thorough process was conducted with extensive due diligence to select the intermediary. Investors are encouraged to conduct their own due diligence to ensure comfort with the intermediary. RCAC will work with local investment partners, primarily Native-led CDFIs, to source deals and jointly underwrite underlying transactions.  

Governing Law:

California