Loans are available to assist the start-up and development of co-operative enterprises in the UK.
The scheme offers the following:
- Loans between £10,000 and £85,000.
- Unsecured loans with no personal guarantees.
- Interest charged on reducing balance.
- Unique understanding of co-operatives.
- No set lending terms (flexible between 1-20 years).
- Ongoing support throughout the term of the loan.
The Co-operative Loan Fund is provided by the Co-operative Group to assist the start-up and development of viable co-operative enterprises in the UK. The fund aims to strengthen the size and scope of the co-operative sector through the provision of ethical, accessible loan finance.
Since the Fund started in 2002 it has lent more than £4 million to 151 co-operatives throughout the UK. When the loans are reapid the money is lent again to other co-operatives.
The Fund does not allow personal guarantees on loans.
New or existing co-operatives based in the UK can apply. Loans will only be made to economically viable enterprises that are democratically owned and controlled organisations registered in the UK.
Match funding requirements have not been stipulated.
Loans are available to borrowers that require finance to:
- Set up as a new co-operative.
- Expand their size and scope.
- Assist employee buyouts or company successions.
- Purchase a property or business.
- Purchase capital equipment or create working capital.
Applications may be made at any time using the online application form which can be found on the Co-operative Loan Fund website.
Applicants will be required to submit a business plan with their application and a Memorandum and Articles of Association or Society Rules.
Applicants should see the Co-operative Loan Fund website for further information.