Monadnock Community Market

AUGUST 2011 UPDATE – MEMBER LOAN GOAL SURPASSED!

As with any business, the MCM Co-op’s need for working capital is greatest now, in our start-up phase.  Member equity from 1,000 members ($200,000) and member loans ($800,000) will provide us with the equity we need to release grant funds and commercial financing so we can begin construction, hire management, and outfit our store.

Your member loan will be used to help finance these start-up costs and outfit our Co-op in Railroad Square. The vision for our co-op was created over the course of three years. The funds raised through member loan investments will help us to fulfill our mission of creating a community-owned food co-op that welcomes neighbors, connects community, and contributes economically to build a healthy & sustainable food system and community.

We are one step away from beginning construction on our 12,000 sq. ft. Co-op store in Railroad Square in downtown Keene! Our community-owned store, just a vision three short years ago, will be up and running in 2012. Our Co-op will be a welcoming space for our community to gather around a diverse selection of local and high-quality foods, and when you walk in, it won’t be just another store; it will be YOUR store.

To get there, we have one more critical step: raising the necessary capital to cover start-up costs and position us to receive grant funding for equipment. To do that, we need $800,000 in member loans. Combined, member loans and equity raised when member-owners join will make up over 70% of our start-up and initial operating costs. You have already been a huge part of our success by joining the MCM Co-op, and, if you are able, we hope that you will continue to invest during this phase.

We’re asking member-owners to make loans because they are preferable to other forms of financing for two important reasons:

1. Member loans typically have a lower interest rate than bank financing, so making a loan now enables us to avoid taking on too much high-interest debt early on in our operations.
2. Your loan demonstrates to future funders that the MCM Co-op has a dedicated support base of member-owners willing to invest in their business.

Co-ops around the U.S. have long used member loans as a way to generate capital for start-up; they are a proven means of raising funds. Not only will your loan benefit the MCM Co-op, it will benefit you directly because it is not a donation, it is an investment. Unlike other investments, however, when you loan the MCM Co-op a sum of your choice between $2,000 and $20,000+, you can choose the term (6-10 years) and interest rate (0-4%) of your loan. The MCM Co-op will pay interest annually over the length of the loan and principal at maturity. Our goal for an average loan size is $5,000. We recognize that not all member-owners will be able to lend $5,000, so if you are able, please consider lending more to help us reach our average. As with any investment, there is some risk. Member loans are not secured; but, national research and our Co-op Consultants confirm that Co-op member loans have a remarkably high rate of re-payment.

Our Member Loan Drive begins April 15th with the goal of raising $800,000 by June 30th. 

If you are interested in making a loan or would like a detailed Member Loan Packet immediately, please call the MCM Co-op office at 603-355-8008 or email us at monadnockcommunitymarket@gmail.com.

We are counting on member-owner support to open our doors!  Go Co-op!