Member Loan Program

An option available to member-owners who reside in Pennsylvania

As we approach opening our doors later this summer, we will be raising additional funding to ensure that our store is in the best position to thrive, post opening our doors.

FAQ

In order to participate in the loan offering, you must be a member of the Co-Op and a resident of PA. Loans must be held by the same person or entity for its entire term and cannot be transferred to another person or entity. If the loan is required to be transferred to a third party, such as an estate, the transfer requires written approval from the Co-Op's Board of Directors.

The minimum loan amount is $2,000 and there is no maximum amount. Loan amounts must be in increments of $100.

The lender can choose their own annual interest rate between 0% to 4%. Lenders can also choose the length of the loan, either 4, 7 or 10 years. These are modest returns. It is presumed that the social benefit of the investment rather than financial return is the motivating factor for lending.

Beginning 6 months after the loan deposit is made to the Co-op, the lender will receive equal monthly payments for the selected term of the loan that includes the principal and simple interest. For example, if the loan is $10,000, the chosen interest rate is 1% per year, and the term is 4 years then the lender will receive $216.67 per month until the loan is repaid with interest.

The Co-Op's capital campaign's objective is to raise $1,600,000 from various sources – memberships, grants, member loans, and donations.

We anticipate the campaign to take at least 2-3 months to achieve our goal. The Co-Op's Board has the right to extend the offering in accordance with achieving its fundraising objectives.

Loan funds will be kept in a separate bank account and not utilized until certain milestones of the campaign goal as defined by the Board of Directors are achieved. If the campaign does not achieve the goals set forth by the Co-Op's Board of Directors, loans will be returned to lenders after and if the Co-Op repays its 1st position debts. Returned loans will pay a pro rata share of all interest accumulated (if any) on the funds during the period that they were held by the Co-Op. For an explanation of Risks associated with this loan, please refer to Section II of the Offering Memorandum entitled "Risk Factors."

The Co-op will use money from the loan to pay for expenses required to open the store and ensure it's viability. A table of the outstanding expenses as of March 22, 2025 is listed on page 12 of the memorandum.

To subscribe for a loan,  please fill out the interest form below.  The loan subscription package can be completed via paper application (which you can also download here) or online via Docusign.

Please fill out the loan subscription package, Appendix A in the Offering Memorandum, and send it along with a check written for the full loan amount to the below address. Checks can be written to Bethlehem Co-Op Market.

Bethlehem Co-Op Market

250 E. Broad St

Bethlehem PA 18018

The subscription will be approved by the Co-op's Board Chair or Treasurer and a signed copy of the subscription will be mailed back to the lender.

The funds raised in this campaign will be used to help pay back high interest loans, support bringing in inventory for our shelves, and conduct trainings for the large number of new hires we'll be making over the next few months.  While we'll continue to accept donations, hold events, and grow membership as part of this campaign, we'll also be offering this new option for member-owners to loan money to the co-op, a strategy used successfully by many co-op's around the country.

It gives member-owners a way to lend money with a modest interest rate and for the co-op to shift its debt away from short term, high interest bank loans.

We will offer loan options with interest up to 4% and monthly payback periods over the course of 4, 7, or 10 years. The loan terms are chosen by the lender.

Interested in Our Member Loan Program?

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