October 14, 2021
REDF launched its Impact Lending practice in 2017 to support the growth of impact-driven employment social enterprises (ESEs) with flexible term loans at favorable interest rates.
To date, the Fund has deployed nearly $2.4 million in loans ranging from $75,000 to $500,000, and its current portfolio of ESE borrowers includes two alternative staffing enterprises, First Step Staffing and Working Fields. Both enterprises received financing to support their growth into new markets.
Now the Fund has added a line of credit product for qualified borrowers who experience cash flow gaps due to seasonal business surges, slow payment of government contracts, or timing of grant receipts.
Line of credit financing is a rare offering among community development lenders and great news for our sector! Nearly half of alternative staffing enterprises experience periods of high seasonal demand that require more operating capital to cover payroll, according to our most recent Performance Survey.
REDF’s Fund will extend one-year lines of credit with the potential opportunity for renewal, and borrowers will be able to draw once per month against their borrowing base. Unlike many conventional lenders, the Fund will not charge a fee for non-usage of the line.
To learn more about REDF’s lending services and their new product, please visit the REDF Impact Investing Fund (RIIF), or contact Emilie Linick, Director, Impact Lending (pictured above) at firstname.lastname@example.org or 206-718-4473.