San Francisco-based fund manager RSF Social Finance has made three loans through its RSF Social Investment Fund, an evergreen debt fund looking to raise $30 million this year to provide flexible financing to businesses underserved by traditional lenders (see, The Liist).
In April, RSF added three “high-impact social enterprises” to the fund’s portfolio. It has added another three in climate-smart construction, food and farming.
RSF provided a $500,000 loan to Goodr, an Atlanta-based waste management company that collects edible food waste from restaurants, airports and other businesses and donates it to local nonprofits to feed those in need. Inedible waste is composted. “The challenges of food waste and insecurity continue to be urgent, and RSF’s support means we will remain equipped to respond,” said Goodr’s Jasmine Crowe-Houston.
Climate-smart food
Through a partnership with Walden Mutual Bank (for background, see “Sustainable lending for sustainable food”), RSF provided a $7 million line of credit to Colorado-based Mad Capital to finance regenerative organic farming transitions. That follows a $5 million loan from RSF last year to finance regenerative ag deals in the US Midwest and high plains regions.
The new facilities “will allow us to support more farmers as they invest in making the transition to regenerative organic farming,” said Mad Capital’s Brandon Welch. Mad Capital has a deal pipeline worth over $150 million with 250,000 acres of farmland.
Mad Capital raised $14 million earlier this year towards a $50 million fund, which will finance at least 50 family-owned farms to transition 25,000 acres from conventional to organic.
Recycled materials
RSF also provided a $6 million loan package to Glavel, a Vermont company that makes foam glass gravel, lightweight, recycled-glass that can be used to build homes, bridges, highways and other infrastructure. Glavel says the product is a low-carbon substitute that’s just as strong as foam, crushed stone and other construction materials.
RSF’s loan package includes $2 million to refinance existing debt and a $3.5 million loan for new equipment purchases. Glavel partners with nonprofits to offer job training and employment for formerly-incarcerated individuals.