A Lending update! Step Up Loan for Nonprofits and Coops.

My name is Claudia Fernandez, Director of Lending. I have been working for Brooklyn Coop for many years now and I have witnessed so many positive changes, and now I’m thrilled to be able to announce a new product created specifically for the non-for-profit space. Bk Coop’s Step Up Loan supports non-profits with loans from $15,000 to $100,000 to cover payroll, equipment, rent, supplies, etc. No personal guaranty required!

The idea was born from constant requests from members and talks with our amazing partner organizations. Not many financial institutions lend to non profits, which include cooperative organizations.* Owners of for-profit businesses can provide a personal guaranty in their business loan applications, meaning they back up the loan with their personal income and credit. But non-profits do not have an owner and cannot supply a personal guaranty. This makes them too risky for most lenders. To resolve this problem, the main feature of our Step Up loan is that it doesn’t require a personal guaranty, no credit pull and no personal income proof from any member of the non-for-profit or cooperative organization.

Back in 2020 at the peak of COVID-19 we offered PPP loans in conjunction with the Small Business Administration (SBA) and worked with many organizations through the pandemic that support the arts, bookkeeping cooperatives, legal services, after school programs, composting services, etc. that were eligible for PPP loans. Once the PPP ended, loans for non-profit organizations were no longer available through the SBA, but the need still exists. While other lenders are not stepping up to the challenge, we are!

How are we able to fund this loan? Because, as a non-profit organization, we receive donations and grants and we are utilizing some of those funds to support our community.

Please inquire about the Step Up Loan via phone at 718-418-8232 ext. 5 or by email at: loans@brooklyn.coop.

 *Did you know that Brooklyn Coop is also a non-for-profit organization? We are! Our members are the owners, and we all have a say in how we do business. That’s why it is important for members to participate in our annual meetings and, if interested, run for a seat on the Board of Directors (that’s another topic for another time!)