Grow Your Co-op!
River Valley Market Member Loan Campaign
We're refinancing our start-up loans on March 9, 2014! and we’re opening it up for individual member-owners to participate. This is an opportunity to earn 3-5% interest on a member loan and support the co-op: a win-win proposal!
Details at Customer Service Desk, call (413) 584-6487 or email email@example.com
We are well on our way to our goal of raising $2 million in member loans. Our cooperative has always self-funded a significant portion of its capital needs through both member equity and member loans. “We were using slow money local investment principles before we’d even heard of slow money,” says Jade Barker, President of the Board of Directors.
About 1,700 area families opened River Valley Market 5 years ago by each investing $150 in a member equity share; 15% of those families also made member loans to the cooperative, totaling over $1 million to secure our 7-year start-up mortgage. Ours was the first food co-op in the nation to raise over $1,000,000 in loans from our members…and that was before we even had a building!
No longer a start-up, we are now a thriving local business with nearly 6,000 member-owners. We support more than 100 local farmers and 200 local businesses, and employ over 100 people. New loans will not only strengthen and localize more of the co-op’s finances; they also enable our community members to earn interest.
We hope to one day be 100% locally funded—success with this member loan campaign will be a great start!
Can you help us meet our goal?
We are successful because of strong community support; this member loan campaign offers member-owners an opportunity to strengthen our local economy in a very concrete way. These loans infuse River Valley Market with locally based capital with terms that benefit you as well as the co-op.
Terms (see Lender’s Guide for complete info)
- Available only to River Valley Market member-owners
- Member loans from $1,000-100,000
- Loan term is 4-7 years
- Lenders select interest rates:
- 0-3% on loans of $1,000-14,999
- 0-5% on loans of $15,000 or more
- Simple interest is paid annually.
- Member loans are unsecured and subordinate to senior loans.
Benefits of member loans
- $1.5 million will help refinance our start-up loans
- $.5 million will support replacing aging equipment and a remodel of our facility planned for next year.
- Capital from member-owners means a lower interest rate burden on the co-op.
- Member lenders earn a highly competitive rate of return.
- Lower debt to banks means less dependence on outside capital.
- Member loans keep our dollars local.
- Member loans demonstrate tangible support for our cooperative model of business and vision of our community.
To make a member loan, call Board Member Jade Barker at 413.584.6487 or send an email message to firstname.lastname@example.org. You may also inquire at our Customer Service Desk.