Raza Development Fund
Raza Development Fund (RDF) invests capital and creates financing solutions to increase opportunities for Latino and low-income communities. In the education sector, RDF works with charter and private schools where leadership teams demonstrate clear vision, high expectations, and academic excellence.
Open process / apply anytime
Loan sizes (range, $): $500K-$10M
Current portfolio: $125M; 34 schools
Cost share (equity) required: Yes (5-10%)
Collateral required: Typically (real estate)
Standard CDFI due diligence
Raza Development Fund provides capital to Latino-serving organizations nationwide and is the largest Latino CDFI, with more than $450 million in total assets under management. Supported organizations have received technical assistance and loans, which have helped leverage additional private capital for education, affordable housing, and healthcare projects.
Raza Development Fund provides a range of lending products including acquisition, bridge, pre-development, construction, mini-perm, term, working capital, and New Market Tax Credit leverage loans. Supporting K-12 education is core to RDF’s mission, comprising approximately 50% of all core capital lending activities.
Focus Areas:
Geographies: Nationwide; does not lend in Indian Country
Sectors: Education, healthcare, housing, social services, small business, transit-initiatives
Schools: Experienced working with start-up and early-stage organizations; schools should demonstrate clear educational vision, culture of high expectations and values, commitment to academic excellence, and serve economically distressed communities.
Hózhó Academy Charter School (Gallup, NM)
Hózhó Academy is a public classical liberal arts charter school founded in 2017. Hózhó provides holistic education supporting students in various academic and personal areas and allowing a full understanding of all students’ cultures in the Four Corners region. Hózhó was founded on the belief that high standards and a rigorous curriculum will offer students a complete education, challenge them to excel both in learning and in character, and prepare them to become active and responsible members of their communities. Hózhó currently serves over 400 students in grades K through 7, 52% of which identify as Native American.
Raza Development Fund provided a $6,555,000 Real Estate Secured Construction & Term Loan that funded the acquisition and renovation of a new site to facilitate the school’s expansion through 12th grade.
Raza Development Fund follows a standard underwriting process that focuses on leadership/board strength, educational quality, and financial sustainability. The process can take 45 to 90 days, depending on the size and complexity of the financing. Please contact RDF directly to initiate their process.