Financing resources for cooperative businesses include grants, loans, guaranteed loans, revolving loan funds, equity capital, and crowd sourcing. Funding can come from Federal agencies, private-public partnerships, lending institutions, Community Development Financial Institutions (CDFIs), foundations, and other organizations. If your funding opportunity is not represented here, please contact us at CoopInfo@usda.gov.
USDA Rural Development - Intermediary Relending Program
USDA Rural Development has an Intermediary Relending Program (IRP) that provides 1 percent low-interest loans to local lenders including cooperatives (“intermediaries”) that re-lend to businesses to improve economic conditions and create jobs in rural communities. Eligible applicants include non-profits, cooperatives, tribal, and public agencies. If you are in need of loan, please contact your local Rural Development office for a list of lenders/intermediaries. Please see website and regulations for more details.
USDA Rural Development - Rural Economic Development Loan and Grant Program
The USDA Rural Development Agency's Rural Economic Development Loan and Grant Program provides funding for rural projects through local utility organizations. The rural utility is the applicant under this program and, if successful, receives a zero-interest loan. This funding can be passed through to local cooperatives and other businesses for projects that will create and retain employment in rural areas.
Worker Ownership Loan Fund
Shared Capital Cooperative provides $5000 to $550,000 loans to worker-owned cooperatives (particularly those in low-income communities) for start-ups, expansions, relocations, equipment, leasehold improvements, inventory, and working capital. Applicants must become a member of Shared Capital Cooperative.