Member Loans


Member loans represent commitment and engagement in the co-op on behalf of its members. While not provided by all members, member loans are nevertheless a very strong indicator of member buy-in and support for the proposed future direction of the co-op. Such investment illustrates that the member values the co-op’s services and is willing to lend a sizable amount of money to the co-op, even when clearly understanding the risks involved. Member loans typically range from $1,000 to over $50,000. Average size loans can range from $3,000 to $10,000.

Serving to leverage bank financing, member loans are a critical ingredient in the cooperative’s mix of assembled capital. A bank will be impressed by a co-op’s ability to raise member loans. Financial institutions often view both member loans and member equity favorably, since both types of member investment are subordinate to bank loans. Member loans can also be viewed as a bridge to member equity. Member loans are most often raised intensively as part of a start-up or expansion project and repaid over a 4 to 10-year period of time, as member equity and profits slowly flow in to replace the member loans.

In order to raise significant amounts of capital quickly, member loans have become an increasingly popular and necessary choice for co-ops. Over the past 25 years, established co-ops have used member loans as an essential capital component in financing start-up/expansion/relocation projects.

Our member loans offer a 3% simple interest over a term of either 3, 4, 5, 6, or 7 years. It is your choice to select a term that works for you.

For example, if you lend $2,500 with a term of 4 years, you would earn $313.77 in interest over a 4 year period. So at the end of year 4, you’d receive a check for $2,813.77. 

If you lend $5,000 with a term of 5 years, you would earn $796.38 in interest over a 5 year period. So at the end of year 5, you’d receive a check for $5,796.38. 

Will you provide our co-op with a member loan? 

  • You must be a current member-owner to lend money to Bluenose Gopher Public House Cooperative. You can easily become a member here.
  • The minimum amount is $500, and there isn't a maximum amount.
  • Click on the button below to download a PDF of our promissory note. Fill out the note and mail it to 681 Prentice Street, Granite Falls, MN 56241 with your check in the loan amount listed on the note.

If you have questions or concern about the member loan option, contact Sarina Otaibi at 320-262-9514 or Andrew Hodny at 320-321-9165. Leave us a message, and we will get back to you as soon as possible. You may also email us at