You have the opportunity to invest and the power to help us open the store.
Loans can range from $1,000 - $1,000,000 for each household and YOU get to choose your terms:
6, 8, 9 or 10 years
0%, 2%, or 4%
If you would like to make a member loan, please email us at info@KCFC.coop, or leave a voice message at (215) 650-7286. All contact will be personally responded to within 24 hours.
In the meantime, feel free to download the to review the details:
***KCFC Member Loan Packet***
Q: Can the Co-op be financially successful?
A: Yes. A professional market survey produced a solid sales forecast used in financial projections prepared by our planning committee and board with the assistance of Cooperative Development Services. The result is a successful business projection. If you are interested in making a loan you will receive information containing our pro forma financial statements. We are willing to discuss them with you in detail. Statistics published in the Cooperative Grocer retail operations survey shows the financial performance of co-ops around the country has been extremely good.
Q: How will KCFC be able to compete with other area grocery stores?
A: We have different offerings than other local grocers - their emphasis is on price and variety within the high volume mainstream. KCFC will emphasize locally produced products to help stimulate local agriculture, eliminate the impact of long distance shipping and cycle money through the local economy. KCFC will emphasize naturally produced and organic products raised without the use of chemicals, genetic modification or antibiotics and with due consideration for impact on the environment to provide tastier, more nutritious products. KCFC will provide educational services allowing shoppers to make better informed and more healthful choices.
Q: Who is eligible to make a member loan to the co-op?
A: Only member-owners of Kensington Community Food Cooperative who are legal residents of Pennsylvania can make a member loan to KCFC
Q: Can I make a loan now and still make another one later?
A: Yes. For some households, temporary conditions limit their current lending ability. Arrangements can be made for a second loan in the future.
Q: I already made a loan, why am I still getting emails about making another loan?
A: We want to be transparent with all member-owners about the state of the project, including our Member Loan Campaign (MLC). We also hope folks will get excited about the progress we're making and hopefully share and celebrate the latest news, therefore encouraging other members to make loans or support in other ways.
Q: What if I don’t have cash immediately available?
A: Some members have made loans by moving money within their savings portfolios rather than taking it out of current spending. Others have used resources available through home equity lines of credit.
Q: Isn’t my membership enough? Why is a member loan needed?
A: The co-op needs start-up funds. Funds to start the store come from membership equity, member loans, outside loans and grants. Member loan programs are long-standing methods used by co-ops to raise money and show community support for their stores. They demonstrate the existence of a loyal customer base and reduce debt service making the business stronger.
Q: What are some legal assurances?
A: All of the legal documents have been reviewed by an experienced attorney and we understand they are appropriate. There are risks involved with making a member loan, as in any other investment. For specific risk statements related to making a member loan, please refer to the Member Loan Packet.
Q: What is the likelihood that loans will be repaid?
A: Our business development consultant has experience with hundreds of co-ops across the country. His experience is that ninety percent of co-op loans are repaid on time and 95 to 98 % of loans are repaid to the lenders. We are convinced that Kensington deserves and has the possibility of being one of the best co-ops in the nation.
Q: Why is it necessary to have the terms of the loan be so far out?
A: The loans are scheduled to come due over 10 years as this spreads out the impact to the Co-op’s finances so we ensure stability over the long term.
Q: Why can’t KCFC just borrow all the funds from banks?
A: Securing financing internally from member loans will enable the Co-op to lessen the overall cost of the project substantially, as commercial loans involve higher interest rates than member loans and require payments to begin immediately. The resulting financial structure will significantly reduce debt service in the critical first four years of business and member loans can strengthen our position when negotiating external financing and demonstrates to commercial lenders the strong community support we can count on.
Kensington Community Food Co-op will sustain a thriving, healthy community and environment, a vibrant cooperative economy, an active and engaged membership and a community educated in social, economic and food justice. — KCFC Ends Statement