Grassroots Member Loan Program

Overview of the member loan program.

Lynchburg Food Cooperative Inc. (doing business as Grassroots Local Market) is now taking loans from eligible investors. Investors can now know that their investment in Grassroots will not only allow the co-op to get off the ground but that a nice return can be earned as well.

Offering Memorandum Notes for the Lynchburg Food Cooperative (PDF)

What are the terms for the loans?

The interest rate is 4.5% per year. The term is five years and is fully amortized over this period.. The payments are monthly principal and interest beginning as soon as Grassroots takes possession of the funds.

Is the loan secured?

No, members loans are unsecured debt and are not guaranteed.

What is the minimum loan amount?


Is there a maximum loan amount?

Grassroots can borrow a maximum of $140,000 from its members in any combination as long as the minimum amount for any given loan is $5,000.

Are there any minimum qualifications for investors?

To lend funds to Grassroots an investor must be a Virginia resident and have the financial ability to weather the loss of this investment.

Are the loans transferrable?

No, an investor may not transfer a loan to another party.

Does making a loan to Grassroots confer membership in the cooperative?

No, a separate membership purchase is necessary to become a member. In addition, there are no voting rights associated with a Grassroots loan; you must be a member to vote.

How do I go about making a loan to Grassroots?

Email us: and we will be happy to discuss the program with you.