Funding Sources
Typical funding for a new retail co-op comes from a variety of sources. During your earliest organizing, founding members may donate or loan funds for basic expenses. Fundraising events in the community can also help support your early overhead. Once you are incorporated and have decided on your membership structure, you will begin collecting membership payments (equity.)
During your feasibility and planning stages is the time to investigate community development funds, jobs programs, state business aid initiatives, and other forms of public funding. Rural communities may be eligible for grants or loan guarantees from the USDA. When you are ready to announce a site and have your business plans in order, a member loan drive can be initiated and commercial loan commitments secured.
Finally, as you move into the implementation stage, you will need to finalize all commitments and continue to recruit new member-owners.
