member loan campaign brochure - inside
DESCRIPTION
Inside of Member Loan Campaign BrochureTRANSCRIPT
What
The Board of the Friendly City Food Cooperative, Inc. has decided the Co-op is ready to launch its Member Loan Campaign. Owner-members are asked to participate to the full extent that they are able. The Co-op seeks additional equity capital in the form of loans in order to leverage bank financing to open the store.
It is an exciting time for our Co-op, as we near the signing of a lease. It is critical that members step up now to provide the additional owner equity capital needed to finance the store.
In the Co-op’s business development plan, members are called on to contribute to two pools of member equity – shares and loans. Shares are $200, entitling each household to a single vote. Loans are the larger pool of owner equity, and will contribute significantly to our ability to leverage bank financing.
Our campaign goal is $600,000 in loans from our members.
Summary of Terms
• Term duration of 5 to 10 years, available on a first come first serve basis;
• Interest rates range from 0% to 3% (up to 4% for loans of $10,000 or more) – selecting a lower interest rate benefits the co-op over the critical years of its initial development;
• Minimum loan amount is $1000; however, a significant number of owner members will have to provide much larger loans for us to achieve our financing goals.
Why
Why a member loan drive now? The Co-op has done an excellent job of preparation over the last 3½ years. We incorporated, began to sell shares, and completed a strong business plan, market feasibility study, and financial pro forma. Now is
the time: our member numbers (nearly 600) have finally reached a point where it is practical for us to begin the member loan campaign.
Who
Only members of the Friendly City Food Co-op are eligible to participate.
How
“How can I participate?” Request and complete a Member Loan Packet (see reverse side). We will then add you to our listserve to receive regular updates on campaign progress.
“What if I can’t afford the minimum loan amount but want to help out?” We would encourage you to buy additional shares ($200 each), or make a contribution of any amount to help the co-op at this time (sorry, it’s not tax deductible).