Member loans a win-win


Fredericksburg Food Co-op members have an opportunity to earn interest up to 6% while investing in their own community! We are seeking member loans for about half of the $3.6 million in capital we’ll need to raise before we open our store.

Member loans allow co-op members to earn interest on this investment in their own community while providing the co-op with funding that is typically less costly and more flexible than traditional bank financing. This can allow co-ops to launch faster.

Remember, in contrast to investor-owned corporations, co-ops keep ownership only within their membership, so they do not raise capital by issuing common stock to outside investors, as that would shift control of the co-op away from members. Co-ops exist to provide a specific, desired service to member-owners, not to return profits to non-member investors. Member loans are a primary way that co-ops raise capital, while keeping control with members.


For co-ops, raising funds among members builds loyalty among these co-op owners that will eventually make the co-op-run grocery store more sustainable.

For members who decide to lend to the co-op, investing in a co-op member loan offers a unique opportunity that is not tied to the volatility of the overall stock market. It very literally moves money from Wall Street to Main Street, where it can make tangible things happen within your own community. This is an opportunity to invest in an organization whose values you fully understand and actually have a say in.

We are seeking loans of $2,000 and up. Members will be able to earn interest up to 6% depending on the amount invested.

Disclosure: Not intended to be a solicitation to persons outside of Virginia or to persons who are not members of our co-op.