Lending

BCI provides non-extractive, or solidarity, lending to local cooperatives through the DC Solidarity Economy Loan Fund. Solidarity loans support a thriving ecosystem of cooperatives by providing access to non-extractive capital, especially to borrowers who otherwise would not qualify for lending under traditional lending practices, and ensuring that they are not bankrupted by automatic loan repayments or personal loan guarantees.

The DC Solidarity Economy Loan Fund (DC SELF)

BCI manages the DC Solidarity Economy Loan Fund (DC SELF), the local chapter of Seed Commons, a national network of solidarity loan funds. DC SELF launched in late 2022 with a goal of providing $1 million in non-extractive loans to DC-area cooperatives by 2025.

DC SELF is one of more than 30 non-extractive loan funds across the country. In contrast to traditional lending practices, non-extractive loans do not require personal guarantees or assets to secure loans, and loans are not repaid until cooperatives have enough revenue to do so – prioritizing living wages and financial stability for the co-op and worker-owners over loan payments. And because we believe relationships mitigate risk, co-ops receive regular meetings with a loan officer during the loan application process and throughout repayment, to ensure they are supported throughout the process.These and other terms ensure that cooperatives who borrow from non-extractive loan funds are not made worse off financially than before they receive their loan.

Interested in learning more about DC SELF? Are you a member of a cooperative that wants to apply for a loan? Reach out to us below!