Member Loans: The Pathway to Member Support
Is your co-op planning an expansion/relocation project sometime in the next three years? Is your co-op looking for ways to access additional capital to support the future plans of the cooperative?
Member Loans are the most effective way to determine member support of an expansion project and to leverage necessary bank financing. Many co-ops dramatically underestimate the potential for member loans that can be raised from their membership.
We have assisted more than 50 cooperatives in the planning and implementation of member loan programs, where co-ops have successfully raised from $50,000 to over $1,000,000. Member loan programs in cooperatives require extensive planning and preparation, prior to implementation. We can help you by:
- Assisting with conceptual and strategic planning for a member loan drive
- Assisting with setting the goal, developing a timeline and identifying who will lead the program
- Coaching before and during a member loan drive until you reach your goal
- Reviewing and critiquing of member loan materials: cover letter, brochure, and information packet
- Identifying ways to build alignment with board and staff prior to implementation
If you are interested in assistance in the planning and implementation of your member loan drive,please contact Bill Gessner.