At present we have $97,949 in membership funds (as of 9/11/2010)
Our committee has been relentlessly pursuing financial well-being for the Co-op Market. We have written lease proposals and submitted them, and contacted many sources of possible financing and loans. We are close to a lease offer, at least one we are comfortable with . We have met regularly with the Bachner group since May of this year to attempt getting a lease agreement.
We have also investigated several other financial options, including USDA loans ( REDLAG: the Rural Economic Development Loan and Grant Program), direct loans through USDA, and a revolving loan option which Brian Newton at GVEA has promised to help with, and which could provide up to $300,000 at low interest.
We have also contacted private “angels” who want to use their money for worthy community investments, along with the Rasmuson Foundation, AIDEA, and local banks. We continue to face a major barrier in financing the Co-op Market. It is the fact that we have no collateral. And of course we have no building which could serve as collateral.
To cope with this , we have engaged legal help to allow us confidence in approaching our members for what are commonly called “member loans”. These are simply loans which our members offer us to solve our problem of collateral.
We have a major effort planned and should be able to launch it within a month which would help us greatly in getting a sound financial footing for the Co-op Market. you, our members, are being asked to help us by loaning us money to provide equity collateral so we can borrow what we will need to open, and perhaps fund fund a major portion of our co-op with these member loans.
( At this point a member asked how much we need, The answer is ~$300,000. More would of course be wonderful.)
Our loan solicitation is nearly ready for you, and we’ll give you much more information soon. Also, Board members have committed to giving member loans to the Co-op Market. I have personally committed $5000 to a board member portion of the financial nest egg we want to use to build the co-op. This can and likely will be one of the most important community actions we can take for our future. Won’t you join me in a community effort to build a food source and market we can be proud of?
submitted 9/20/2010 Rich Seifert