Randy Rice

Overview

A cooperative (co-op) is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Co-ops are also values-based businesses, rooted in self-help, responsibility, democracy, equality, equity, and solidarity.

The Cooperative Fund of New England Inc. (CFNE), founded in 1975, is a bridge between social investors and cooperatives, providing loans and technical assistance to co-ops, worker-owned or democratically managed companies, and nonprofit organizations that meet a defined community need. The organization gives preference to organizations serving low income communities.

CFNE serves the six New England states and the eastern edge of New York State, with outreach coordinators located in various communities across the region. These representatives are the equivalent of business development or loan officers for the Fund.

History

Despite their social impact and contribution to the economy, co-ops often face challenges in obtaining the resources they need to grow and serve their communities better. It was for this reason that a group of co-op activists and social investors founded the CFNE. While the Fund started by lending primarily to food co-ops, its lending market has since expanded to other sectors including worker, farmer, artisan, education and housing co-ops, as well as land trusts and community-based nonprofits serving basic human needs. CFNE gives priority in its lending to cooperatives and other borrowers that serve low income communities and may have difficulty accessing financial resources.

Loan and Investment Products

CFNE provides term loans and lines of credit to finance the purchase of real estate, business assets, inventory and materials, leasehold improvements and working capital. Borrowers must be incorporated entities that match the mission of the Fund and are located within its service area.

CFNE is in the final stages of launching the Cooperative Capital Fund of New England (CCF), a separate but affiliated organization. CCF is an investment fund that invests in cooperative businesses in the form of “patient capital” or equity-like financing. CCF helps cooperative enterprise to grow and flourish by providing capital that acts like equity without requiring co-ops to give up control over their own management and destiny, as traditional venture capital might.

Impact

From inception in 1975 through December 31, 2008, CFNE had made 443 loans totaling $16.7 million. Eighty-five percent (by dollar volume) of the Fund’s loan portfolio has been devoted to cooperatively owned and managed enterprises. Over the last five years, CFNE’s financing has assisted in the creation or preservation of 1,258 cooperative housing units and 1,424 jobs in cooperatives and nonprofits. CFNE has had a positive change in unrestricted net assets in each of the last five fiscal years.

Investing in CFNE

On behalf of our clients, Trillium Asset Management Corporation (”Trillium”) made its first investment with CFNE in 1999. Trillium will facilitate client investments in CFNE of at least $5,000 for a term of not less than two years. CFNE is a member of the Opportunity Finance Network and participates in the CARS Rating System.

Loans Made as of 12/31/08

	2008	Since Inception
	32	443
Dollars disbursed	$2,059,233	$16,783,296
Loan loss	0	1.2%
Loans repaid	$1,233,747	98.8%
Average loan	$63,726	$37,856
Smallest loan	$2,000	$400
Largest loan	$400,000	$400,000

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