We are with you every step of the way to help you navigate the loan process.

RIIF invests across industries, through a variety of loan products, in amounts that correspond to the enterprise’s need, creditworthiness, and ability to hire individuals overcoming significant barriers to employment.

Think of our process as not just applying for a loan, but as building your financial capacity and deepening your understanding of your financial picture along the way, too. Leveraging REDF’s capacity building team, we pair each loan with targeted technical assistance in the key areas of business operations, financial management, and employee supports. Our goal is to extend to entrepreneurs the flexible capital to grow and the capacity building to help that growth stick — all in service to maximizing employment outcomes for overlooked talent across the country.

The application cycle can run 60-90 days from initial conversation to loan closing, depending on complexity of the loan, capital stack, and availability of information needed to underwrite. The process, which is done in partnership between you and our underwriting team, looks like this:

If you are interested in learning more about a loan with our fund, please complete our interest form. If you meet the minimum eligibility requirements, a loan originations team member will reach out to confirm mission fit, capital need, and potential impact of the financing.

You’ll be asked to submit materials around your business model and your social impact, which is measured through the employment and economic mobility of people within our focus populations. Our objective is to see how your intended results complement (and help build) the impact of our current portfolio.

Once we have alignment on the above, you will receive an invitation to complete a more comprehensive loan application.

In collaboration with you, our underwriter will generate a preview of your financing request, which contextualizes the risk and illustrates the intended social impact. This memo then goes before an internal credit committee for consideration.

If the request passes committee, a term sheet — or a non-binding agreement that shows the basic terms and conditions of the investment — is issued, providing detailed feedback from the committee on areas to focus on during the underwriting process.

Now we go a layer deeper in our due diligence to test some of the assumptions made earlier in the process. This can include:

Required Information

  • Mission and social impact (employment for our focus populations)
  • Historical financial and operational analyses (past three years)
  • Projected cash flow and detailed assumptions
  • Debt service coverage analysis
  • Business background and growth strategy — including key successes and goals
  • Competition and demand analyses
  • Sources and uses (capital stack, likelihood of funding)
  • Management team and board bios

Underwriting Process

  • Review of above information
  • Site visit
  • Interviews with clients and partners to document the assumptions and risks of the transaction

We summarize the information above in a final underwriting memo, which is then considered by the credit committee.

If the loan is approved, we generate a closing checklist and walk you through the process, which includes:

  • Additional documentation (typically documents you already have on hand e.g. insurance, bylaws, articles of incorporation, etc.)
  • Proposed loan covenants
  • Reporting requirements over the lifetime of the loan