A food co-op in my area is raising funds from co-op members for a pretty interesting opportunity. It's a not-for-profit local/natural food grocer with 2 locations in town, and solid financials.
Basically, they expanded in the last couple years, and financed a new building at a cost of ~$3 million. It's financed through a local credit union.
Now, they are raising funds from community members to pay off that loan. Basically, their goal is to pay interest to community members, instead of to the bank.
I thought this was a fascinating concept, and I've never heard of another business doing this. The co-op is technically already member-owned (you pay a small fee to get membership, and they issue dividends if they hit financial targets). Now, they are taking this another step forward.
I mainly just wanted to discuss this as a concept, because I find it interesting. Has anyone seen similar programs out there?
Here's what they are offering in terms of "shares" (function more like bonds):
Class - Interest - Term - Minimum
Class B - 2.75% - 1 year - $500 min
Class C - 4% - 4 year - $2,500 min
Class D - 5% - 5 year - $10,000 min
I'm considering parking 5-10k there (funds that are currently sitting in a high-yield savings account, earmarked for a house at some point) but I'm still thinking about it.