Affordability Rate Capital
ARC Fund deploys philanthropic capital as an interest rate subsidy, reducing borrowing costs by 300 basis points for small businesses across Appalachian communities.
Across Appalachia, small businesses are being turned away from capital they qualify for. The issue is not creditworthiness. It is monthly payment load at standard CDFI interest rates.
Post-Hurricane Helene emergency relief programs have wound down. Standard terms are back in effect for businesses still carrying storm damage.
ARC pays a fixed quarterly subsidy directly to the CDFI partner. The borrower sees one loan, one payment, one lender. The pool is invisible.
Philanthropic funders contribute to the ARC pool. Capital is deployed as quarterly interest rate subsidies, not grants spent in one transaction.
CDFI partners underwrite and service loans under their existing standards. They absorb default risk. ARC holds no note, no collateral, and no lien.
Each quarter, ARC pays the flat monthly payment difference directly to CDFI partners for every active qualifying loan in the portfolio.
Small businesses receive loans at a 300 bps lower rate. One loan, one payment, one lender. The subsidy is invisible to the borrower.
Including fee structure, payment schedule, and a full deal example
ARC Fund makes your qualified borrowers affordable. You originate. You service. You keep the relationship.
Your philanthropic dollar works harder than a direct grant. 23x leverage. 16% lower cost for the same borrower benefit.
ARC Fund follows a structure with documented precedents across municipal, federal, and CDFI systems.
ARC Fund is in active pre-launch development. We are building the initial CDFI partner network and first funder pool now.