By purchasing a Note, you are lending money to the Co-op. The Notes represent our unsecured promise to repay principal at maturity and pay interest during the term or at maturity.
Key Terms of Owner Loans (Notes)
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Minimum Investment: $10,000, available in increments of $5,000.
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Loan Term: 15 years from the date on the Promissory Note.
- Interest Structure: Interest is simple (not compounded) and paid at the end of the loan term. These are modest returns, and it is presumed that lenders are motivated by the social benefit of investing in the Co-op rather than financial gain.
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Interest Rate: Selected by the lender based on the loan amount:
| Loan Amount | Maximum Interest Rate Options |
|---|---|
| $51,000+ | 0%, 0.5%, 1.5%, 2.5%, 3.5%, or 4.5% |
| $26,000 - $50,000 | 0%, 0.5%, 1.5%, 2.5%, or 3.5% |
| $10,000 - $25,000 | 0%, 0.5%, 1.5%, or 2.5% |
💡 Interested in lending $50,000 or more? We’re open to discussing different interest rates to make this a win-win. Contact us to explore options!
Additional Considerations
- Subordination: Repayment of Notes is subordinate to the Co-op’s senior lenders (bank debt), vendors, landlords, employees, and trade creditors. This means that in the event of financial difficulties, these obligations must be paid before repaying Owner Loans.
- Security: Notes are not secured by Co-op assets or collateral.
- Transferability: Notes cannot be transferred to third parties without Board approval.
- Early Repayment: The Co-op may choose to repay Notes early at its discretion, with interest accrued up to the prepayment date. There is no penalty for early repayment.
Full Terms & Legal Documents
The Notes Subscription Package includes the full terms and conditions. You can find this document and additional legal information on our website here.
This is not an offer to sell securities which is made only by the Confidential Offering Memorandum and only members who are IL residents are eligible to invest in Owner Loans and only IL residents are eligible to invest in Preferred Shares