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The
Worker Ownership Fund (WOF) is a fund managed by Northcountry Cooperative
Development Fund (NCDF) on behalf of the U.S. Federation of Worker
Cooperatives (USFWC), to increase access to financing for start-up
and existing worker-owned cooperatives.
NCDF and the
USFWC understand the business structure of worker-owned cooperatives
in a way that traditional lenders can't, and not only offer a new
financing option for co-ops, but technical assistance and mentorship
so that cooperatives can better develop a viable business plan and
loan application.
For more information on the Worker Ownership Fund, please call (612) 331-9103 or email info@ncdf.coop .
For more information about the U.S. Federation of Worker Cooperatives,
please visit their website at www.usworker.coop .
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Lending Priorities
Loans/investments will only be made if they satisfy the sound business standards/criteria developed through the experience and expertise of the host loan fund. That said, the following are additional social criteria that will be taken into account in deciding which sound business applications to favor with financing:
- Democratic Job Creation. The topmost priority is democratic job creation. Applications will be favored in direct proportion to the number of democratic jobs they promise to create. Long-term job creation will be considered; thus a project intended to serve as a foundation for further cooperative developments would receive favorable consideration over a stand-alone project.
- Democratic Enterprise in Low-income and Underrepresented Communities. Business plans that will create democratic jobs in low-income communities and communities currently underrepresented in the worker cooperative movement (e.g., African-American) will receive favorable consideration.
- Safeguards Regarding Cooperative Longevity. Cooperative applicants will be favored to the extent that they include mechanisms to preserve the affordability/accessibility of membership by people of limited means and safeguards against the conversion of the business and its assets to conventional ownership.
- Democratic Operation. Applying cooperatives will receive favorable consideration commensurate to the (anticipated or existing) levels of democratic participation of their workers in business operation. In addition to the standard elements, business plans for start-ups will be expected to include a plan for democratic organizational development and education.
- United States. Lending/investments will be focused in the United States. However, collaborative projects with such partners as the Canadian Worker Co-op Capital Fund could be considered for cooperative enterprises that cross borders.
- Projects Disfavored by Conventional Lenders/Investors. Priority will be given to projects that, although sound from a business perspective, would receive unfavorable consideration from conventional lenders. Whenever possible, the backing of the dedicated fund will be used to leverage support from other lenders/investors in the interests of furthering democratic job creation.
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