RCDR Family Of Funds:
This loan fund
is a partnership with Yakima County. RCDR serves as the direct lender for loans between $2,000 to $25,000. The program provides loan capital to low and moderate income
persons or businesses that will hire low and moderate income persons. All potential borrowers are required to take a 15 hour
structured business management training program as a requirement for loan acquisition. Several banks such as US Bank, Key
Bank, Pacific Northwest Bank have provided matching funds needed to access federal dollars.
EDA RLF:
This loan fund is a partnership
between EDA, local lending institutions and RCDR. The loans are from $25,000 to $75,000 for new or existing businesses, that do not qualify for conventional financing. The
service area is Yakima County.
City of Yakima, Minority &
Women Lending Initiative:
This loan fund is a partnership between the City of Yakima and RCDR. The program serves to increase lending to minority
and women owned business within the City of Yakima..
SBA Micro loan Program:
This loan fund is a partnership between SBA and RCDR. The purpose of this loan fund is to provide access to loans to new and emerging businesses that do not qualify for bank
financing. This program will concentrate on targeted pockets with large Limited English Speaking Entrepreneurs. Service area
is Walla Walla, Pasco Royal
City, Moses Lake,
Mattawa and Yakima County.
In addition, RCDR has been recognized as a viable financial intermediary by federal agencies with the following designations.
SBA Pre-Qualification Program:
This designation by SBA is to increase access to capital
for minority business owners. RCDR serves as the loan broker by doing all the preparatory work in regard to the loan package. The loan is then submitted directly
to SBA for guarantee status approval. Once guarantee letter is approved, the loan package is "shopped around" to several banks.
This allows the borrower to get access to the best loan opportunity that serves their specific needs.
CDFI:
In 1999, RCDR was "Certified" as a Community Development Finance Institute (CDFI) by the Department of the Treasury. This designation has
been the turning point for capacity building for the organization. As part of this designation, a $37,000 grant was awarded
to allow the organization to build organization capacity through obtaining consulting services, technology and training.
As part of the loan application process the potential borrower is required to attend a 25 hour course titled,
"Small Business Management", which must be completed prior to loan approval. The course covers the basic areas of marketing,
accounting, cash flow and taxes.
Once the loan packaged is finalized, the potential borrower
makes a formal presentation to the loan review committee that is made up of bankers and small business owners. The loan review
committee will either approve, deny or approve with contingencies. Once the loan is approved, the loan officer proceeds to
secure all collateral and prepare documents for closing.
As of June 30, 2002, sixty-two
(62) loans have been made available to borrowers, totaling $1,282,346. Twelve others loans have been packaged, but not approved,
and an additional 6 loans have been packaged and financed through local lending institutions utilizing an SBA guarantee. Ninety
one percent (91 %) of the loans have been made to Latino/Hispanic. The loan portfolio is diversified from Flores Laundromat,
Cardenas Dairy Hoof Trimming, Dos Lupitas Bakery, Leo's Music, Carniceria Cualcoman . The current loan portfolio status shows
only two loans in default. Our current loan average is $16,000. The total loan portfolio is $843,762
Community Development:
RCDR has been involved in a community development project called the "The
"Mercado Project". It has been in the pre-development phase for the last five (5) years. It is a proposed combination retail
center and senior housing component. This is a partnership between private, public and non profits. RCDR has been designated as a Community Housing Development Organization
(CHDO) by the State of Washington and City of Yakima.
Center for Latino Farmers: RCDR has been involved in providing technical assistance to small limited resource farmers since 1992. In 1999, RCDR became
the only Northwest organization to be involved in a national "Supermarket" Project. The project is designed to promote economic
viability of small and minority organic farmers in the US and Mexico. The marketing network will help small farmers compete
in e-commerce. They will be able to be trained and use e-commerce as an opportunity to trade. This will allow small farmers
to become more "business conscience" to survive in the new environment. 
