Business by People, for People

Patchwork Cooperative Loan Fund supports the growth of cooperatives in Kentucky by providing low-interest loans, free technical assistance, and community education.

We are a member of Seed Commons, a national financial cooperative that has deployed over $100 million to build economic equality.

 
 

What We Do

Low-interest Loans

Our lending program offers low-interest business loans to cooperative startups and existing businesses converting to a cooperative ownership structure.

  • Loan funds can be used for working capital, equipment, real estate, or any other project the borrowing cooperative needs in order to succeed.

  • We charge 8% simple interest on all loans (as opposed to compound interest).

  • Repayment plans are flexible and tailored to the financial needs of each borrower.

  • These are business loans, not personal loans. The only assets that will ever be collateralized by a loan are assets the borrowing cooperative purchased with the loan funds.

  • Our lending process is designed for working people. No credit checks. No background checks. No discrimination. As long as a cooperative is aligned with our values and the business plan is solid, we’re happy to invest in its success. 

Free Technical Assistance

All cooperatives served by our lending program are guaranteed access to one hour per week of free technical assistance until loan repayment is complete. Any other cooperatives or aspiring cooperatives in Kentucky may also request technical assistance, which will be granted subject to availability. We offer free coaching to both existing and aspiring cooperatives in the following areas:

  • Business planning and strategy

  • Loan proposal preparation

  • Financial management

  • Market research

  • Corporate structure

  • Democratic governance and procedures

  • Conflict transformation


 

Community Education

Our community education program is how we inform the working people of Kentucky of the many economic opportunities available to them through cooperative business ownership. Our public workshops, resources, and events are important to our grassroots outreach strategy and to fostering a general understanding of cooperatives. Some topics our community education efforts highlight include:

  • What is a cooperative and how to start one

  • The history and future of cooperatives 

  • Cooperative conversions: opportunities for exiting owners and aspiring worker-owners

  • Economic Democracy

 
 
 
 
 

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