Member Loan Program
Common Ground is on the move!
After more than 30 years in our original location, Common Ground Food Co-op is moving to a convenient new location in Lincoln Square Mall, right in the heart of downtown Urbana. Membership and sales are growing and additional space is needed to stock more local and organic foods for our community.
The prime, store-front site allows the Co-op to provide more local and organic food to members. Product lines and selection will expand. Common Ground’s reach to the community will grow. It will be a secure and growing home for the Co-op for decades to come, offering ample parking, access to public transportation, great synergy with the Farmer’s Market, and great visibility and access.
But a move of this magnitude requires the vision, financing, and help of all of Common Ground’s members.
There is a lot to pay for up front:
- Building out the new space
- Buying used and new equipment such as coolers, additional cash registers, and a deli
- Additional inventory
- Bringing in additional staff
It will cost $670,000 and we need our members’ help to make this move a reality. While the Co-op’s financing plan includes: member equity, some bank loans, city and county funds, and tax deductible donations, a majority of the assistance will come from loans from Common Ground’s members.
Member Loans
Members of Common Ground Food Co-op have the opportunity to loan money to the Co-op at negotiable interest rates to finance the bulk of this move. In essence, we are serving as a bank to the Co-op, much like a bank would finance a similar business move. We are the owners of Common Ground and it makes sense for us to financially support our community food store.
How does it work?
You get to choose an amount you feel comfortable loaning the Co-op, a date for it to be repaid, and the interest rate you wish to receive.
Simple contracts spells out the details and binds our agreement . You will receive annual financial reports on the health of your co-op.
What are the terms?
The terms for all loans are adjustable: you get to choose a plan that works for you.
The financial plan requires that loans are evenly split across five through 10-year terms. Interest and principal are to be repaid at the end of each loan’s term. Interest is compounded annually.
More specific information is provided in the Member Loan Information Packet.
How do I make a loan?
The Member Loan Information Packet describes the loan program in great detail. You will also find an assessment of the Co-op’s financial situation, loan terms, and benefits and risks involved in participating.
All potential lenders must consider the information in this packet when considering making a loan. They are available in the store, or by contacting Jacqueline Hannah, Common Ground General Manager.
If you have questions about the loan program please contact:
Ben Galewsky
Board Member
Phone: 384-2033
Email: ben@peartreestudio.net
Jacqueline Hannah
General Manager
Phone: 352-3347
Email: jacqueline@commonground.coop