Last night Beloved Community Incubator publicly launched the DC Solidarity Economy Loan Fund (DC SELF), DC’s only non-extractive loan fund! More than 60 people from across the DMV gathered to learn about the solidarity economy, non-extractive lending, and how DC SELF is already supporting local cooperatives in accessing sustainable capital.
In 2020, BCI reached out to local cooperatives and solidarity economy projects, to listen to their needs and dreams. In our conversations, access to capital was one of the major barriers co-ops named to sustainable growth. In response, BCI partnered with Seed Commons, a national wealth-building cooperative, to launch the DC Solidarity Economy Loan Fund (DC SELF) in late 2022. DC SELF is a local chapter of more than 30 non-extractive loan funds across the country.
Unlike traditional lending under capitalism, which requires personal guarantees, credit scores, and automatic loan repayments, non-extractive loans focus on relationship as the guiding principle: co-ops are never required to put up personal assets to guarantee their loans, and repayments don’t begin until the business is making a sustainable profit, including paying a living wage for all workers.
At last night’s launch, attendees heard from Dulce Hogar Cleaning Cooperative and Throneless Tech Cooperative, two local co-ops who have already received loans from DC SELF, about their experiences working with DC SELF:
Getting a loan through DC SELF and Seed Commons was huge for us. We applied to do a major project in the internet freedom sector, which has really big implications for organizers, activists, and journalists all over the world, and when we got the contract for it we realized we needed some new hardware to actually take on this project. We worked with Bianca to apply for a loan to cover our equipment and a general loan, which allowed us to sustain ourselves and start work before we had payments come through. The process of applying for the loans was smooth and responsive — Bianca was so available, and answered all of our questions. Having regular meetings after we’ve received the loan has also been so helpful — we can share where we’re at and be transparent as money comes in and we’re able to pay back our loan.
It’s been incredible to have the security and sustainability of this non-extractive loan, and to know that we’ll be able to keep doing what we’re doing.
— Rae, Throneless Tech Founding Worker-Owner
You can watch the full recording of the launch here — and if you are interested in getting involved with DC SELF, either through donating or as a cooperative looking to receive a loan, you can contact us here!