$1M+ raised within the co-op community!
WORKING CAPITAL: our expansion financing came from a mix of sources, including more than $1M in loans from Dill Pickle owners.
In total, owners must fund $1,127,000 of our $3M+ project— with the additional $115K needed to ensure our new store’s success.
Community owned,
locally grown
The Dill Pickle Food Co-op opened its doors in 2009 as the only retail food co-op in the city, leading the way for a groundswell of cooperative organizing in the Chicago area. We're thrilled to have recently moved to our new home at 2746 N. Milwaukee Ave, growing into a space almost ten times the size of our original store.
Community ownership is the cornerstone of our co-op: our nearly 3,000 owners share in both risks and rewards, and have a voice at the table through democratic governance.
We’ll continue to be sustained through the collective investment of friends and neighbors who’ve together created a shared community asset to better access fresh, local foods.
Owner Loan Program
“There are very few legal means to invest directly in our local economy. Most of our saving and investment choices are pure Wall Street. What will happen to my nest egg when that blows up again? I see making a loan to the Dill Pickle Food Co-op as an opportunity to diversify my portfolio and support a business that I love. ”
“I made an owner loan because I believe in the power of many individuals coming together to build something AWESOME!”
Rates & Terms
The Dill Pickle Food Co-op will accept owner loans of $1,000 and up. Lenders may choose the interest rate of 0-4 % per annum, and terms of 6, 7, 8, or 9-year maturity lengths, subject only to the planned distribution across maturity options. Simple interest plus principal will be paid at the end of the term.
Only active owners who live in the State of Illinois may make a loan to the Co-op. Out-of-state owners are welcome to buy additional equity up to $500 to help our fund-raising effort.
Owner loans (promissory notes) described here are offered at face value, unrelated to the value of the Co-op or its operating results. These notes are not transferable. No market exists for these notes and none is expected to develop. All notes made by owners to the Co-op are unsecured and subordinated.
Risk
The retail world has some uncertainty and we are obligated to inform owners that there is risk in making a loan to the Co-op. Prior to the acceptance of any loan, the Co-op will make available to each owner/lender a copy of our Owner Loan Packet outlining risks involved, use of funds, and the Co-op‘s current financial condition.
Repayment
In the event of a significant reduction in sales or other business misfortune resulting in an inability to make the required payments, it may become necessary for the Co-op to repay the principal balance of these loans from future notes or other debt instruments. The Co-op's outside lenders require owner loans be subordinated to institutional loans in the repayment of debt.
Upon maturity of a promissory note, owner lenders will receive notice and a form indicating interest in renewing the note. If the owner elects to renew, the interest rate may be renegotiated. If the owner elects to terminate the note, payment of principal and interest due will be made within five business days of maturity.
GOT A QUESTION ABOUT owner loans? CHECK OUT OUR FAQ!
Got a question about Ownership? Check out our FAQ!
Contact
Brock Auerbach-Lynn
Board President, Board of Directors
ownerloans@dillpickle.coop