Support the Capital for Cooperatives Act
On behalf of our organization, we are happy to join with the American Sustainable Business Council, Social Venture Circle, 1worker1vote, National Cooperative Business Association and others to support the Capital for Cooperatives Act.
In 2018, Congress passed the Mainstreet Street Employee Ownership Act and directed the SBA to recommend and implement practical alternatives for cooperatives that will satisfy the agency’s loan requirements. SBA’s inaction since then is unacceptable and must be remediated.
Cooperatives are a rising force for good and unity as the emerging American Stakeholder Economy being a traditional mainstay of rural communities and urban areas alike. Cooperatives are an integral part of the US economy with nearly 30,000 U.S. cooperatives operating at 73,000 places of business throughout the U.S. They own more than $3 trillion in assets, generating over $500 billion in revenue and over $25 billion in wages. In the wake of the Covid-19 pandemic, small businesses require adequate and equitable access to capital more than ever before. Under current SBA policy, arbitrary regulations are preventing these cooperative businesses from securing key 7(a) guarantee loans. More than ever before, these businesses require adequate and equitable access to capital.
Therefore, I wholeheartedly support the Capital for Cooperatives act, which will ensure that cooperative businesses are able to access the capital necessary to expand their businesses, create jobs, and support economic opportunity amongst diverse ethnic, geographic, and socio-economic communities.