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.

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

If you are interested in 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

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.