"Brooklyn Cooperative Federal Credit Union recently extended a $100,000 line of credit to Brooklyn Packers, a decade-old agricultural co-op that moves food statewide to pantries, senior centers and direct customers. The product offers term loans and lines of credit up to $100,000 without personal guarantees, relying instead on cash-flow underwriting - an approach better suited to cooperative ownership structures because it offers a scalable path to growth without sacrificing democratic ownership."
"The credit union backed the program with a $1 million loan-loss reserve from the Community Development Financial Institutions Fund, covering up to $2 million in co-op and nonprofit lending. Advocates say the model fills a gap left by conventional lenders and Small Business Administration rules that still require personal guarantees. Leaders at National Cooperative Bank and other co-op lenders support similar reforms."
Brooklyn Cooperative Federal Credit Union created a loan product tailored to worker-owned cooperatives, offering term loans and lines of credit up to $100,000 without requiring personal guarantees. The underwriting relies on cash-flow analysis rather than personal collateral, enabling cooperative ownership structures to scale while preserving democratic governance. The credit union issued a $100,000 line to Brooklyn Packers, a decade-old agricultural co-op distributing food statewide to pantries, senior centers and direct customers. The program is supported by a $1 million loan-loss reserve from the Community Development Financial Institutions Fund, covering up to $2 million in co-op and nonprofit lending. Advocates and co-op lenders back similar reforms.
Read at Brooklyn Eagle
Unable to calculate read time
Collection
[
|
...
]