Get your NCG Development Co+operative Loan

Last fall, National Co+op Grocers (NCG) officially launched, through its Development Co+operative, the NCG DC Loan Fund. The Loan Fund is a $10 million program, composed of $2 million of subordinated debt from NCG and 18 NCG member co-ops, and $8 million in senior debt from Capital Impact Partners. The Loan Fund was formed to address the difficulty experienced by retail food co-ops in obtaining bank loans, and it represents a new channel through which food co-ops may obtain loans.

As of January 2015, the Loan Fund has one application in progress for $1 million. That means $9 million is still available!

Please consider the NCG DC Loan Fund for your next business expansion. This fund represents a critical first step in our ability to increase the availability of capital for food co-op expansion projects. Your support of this fund will help our food co-op system build credibility with investors and provide greater access to capital for retail food co-op expansions in the coming years.

Loans are available for store remodels, refinancing, equipment, asset purchases, and other development, improvement, or expansion projects. Loans will be underwritten and serviced by Capital Impact Partners, with administration and final approval by the Loan Fund. All loans must be senior secured loans, and the Loan Fund will not consider any subordinated or second-position financing.

The Loan Fund aims to provide flexible underwriting and speedy approval for qualified borrowers, and funds are available under the following terms (see accompanying graphic).