Membership

Like all food co-ops, the Troy Community Food Coop depends on and will use loans from member-owners to help operate the store. These loans also help leverage bank financing.

Nationally, food cooperatives routinely use owner loans as a mechanism in development, providing growth opportunities and funds for capital improvements and expansion projects. As a TCFC member, you have the opportunity to make a financial investment in the form of an owner loan.

Your investment will further the revitalization of our community, support local growers, and create jobs, while increasing the community's options for a healthier lifestyle. Participating in this program reflects the basic premise of "owner loans as investments in the quality of life of the community," not as financial growth investments.

Start-up food cooperatives typically raise between $300,000 and $1.1 million in owner loans to adequately capitalize their food cooperatives.

• Provide member-owners and other shoppers with an abundant supply of fresh, local, and organically grown foods;
• Support local growers and food producers as well as the local economy;
• Create jobs and training in an area that needs these opportunities;
• Further the revitalization of the Congress Street area;
• Offer the lowest possible prices to serve all economic and cultural segments of the community;
• Provide education about cooperatives, food, health, and related topics;
• Make a contribution to the community by providing a welcoming community-based environment in which to shop; and
• Support community-based organizations with member-directed contributions.

The Owner Loan Program is open to all TCFC member-owners that are New York State residents.

The details:

Loans greater than $10,000: an interest rate between the applicable federal rate as designated by the IRS and 5%. (chosen by the owner-lender).

Loans between $1,000 and $10,000: an interest rate between 0 and 4% (chosen by the owner-lender).

Simple interest will be accrued during the term of the loan and paid with the principal at the end of the term.

The term of the loan is either 5, 6, 7, 8, 9, or 10 years (chosen by the owner-lender on a first-come, first served basis).

In the term year, a balloon payment of the accrued interest and the full principal will be made.

Yes, there are risks. Member-owners considering making a loan should understand that they are putting their funds at risk to support a new community-owned cooperative business.

The Troy Community Food Co-op has no operating or financial performance history, and the grocery business is a very competitive one. Owner loans are also unsecured and are subordinate to the Co-op's bank loans.

As in all lending decisions, member-lenders should not exceed their capacity to absorb potential losses inherent in any business endeavor.

For a full disclosure of the risk involved in making an owner loan, please call the general manager at the Troy Community Food Cooperative at (518) 720-3183 for a copy of the loan documents.

Call the Troy Community Food Co-op general manager at (518) 720-3183. He can answer your questions and send you the loan documents.