Loan Terms options: 10, 13 & 16 years explained

Loan Terms options: 10, 13 & 16 years explained

Our 2-month Capital Campaign to secure 500,000 through member loans is off to a fantastic start! We have over $325,000 in pledges and loans received in January. 

We are grateful for the generous Board and Staff pledges, along with the strong response from the early outreach among a small group of members. This impressive outpouring of financial support further demonstrates members’ commitment to the Coop moving.   

Thank you to all who have pledged so far! If you aren’t in the loop yet, please read the Co-op mailing you received during the 3rd week of January or check our web page. You will likely receive a call from a member/volunteer to provide more information and answer any questions over the next few weeks if you haven’t been contacted already.     

The Board and General Manager have been studying “the move” for over a year. Their research includes a market feasibility study and financial planning with cash flow projections, loan repayment schedules, and scenarios reflecting the various options. 

The report and financial planning forecasts are extremely positive even when using conservative timeframes. The Financial summaries can be reviewed here and are updated as the process evolves. 

Currently, we are offering loans with 10, 13, and 16-year terms. The spread in loan repayment allows the Co-op to build up profitability at the new store, pay back lenders on time, and ensure the Co-op’s growth projections are responsible and realistic. Member loans will be used to make renovations and finance the move. Donations and grants are also being pursued. In addition to member loans, bank loans ($500,000 from Mascoma Bank at 3.5% interest and $180,000 from VT Economic Development Authority at 4.72% interest) have been approved to cover the purchase of the Hardwick Village Market and are of longer duration (25 – 30 years). If we exceed our $500,000 goal we can pay down the debt sooner.

Campaign Volunteer Kathy Volk helping process loans and send thank you’s!

For more information about making a loan, check this out on our webpage or contact the Coop for a copy of the entire Offering Memorandum.

Co-ops in general, and especially well-established Co-ops like ours, have excellent track records for repaying Community Loans. According to Ben Sandel of Columinate Consulting, they are paid back in 95% of cases. BMC has over 45 years of experience successfully operating in Hardwick. Help us move and grow by investing today!

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