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.
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.
No, members loans are unsecured debt and are not guaranteed.
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.
To lend funds to Grassroots an investor must be a Virginia resident and have the financial ability to weather the loss of this investment.
No, an investor may not transfer a loan to another party.
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.