Enhance the ability of worker cooperatives to emerge, grow and thrive by investing dollars directly into worker cooperative businesses and entities that support them.

• Create a Worker Cooperative Revolving Loan Program on the city level that can support worker cooperatives with local procurement and other general needs. The program should:

  • Offer subordinated debt** and loan guarantees to enhance capital access for under-resourced cooperatives

  • Waive personal guaranties and other requirements that often prevent cooperatives from accessing financing conventional private or public business lending programs

• Create a Worker Cooperative Grant Program for worker cooperative start-up and operating businesses in vulnerable and most impacted communities, especially those hit hardest by COVID

• Establish a municipal public bank to support worker cooperatives and other community-led economic development initiatives in BIPOC communities. Through public banking, NYC can divest public money from Wall Street banks that harm NYC neighborhoods, and invest in small and worker-owned businesses, affordable housing, renewable energy, and other critical community needs.
  

** - An unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full (Investopedia). Having access to subordinated debt can make it easier for coops and other businesses to raise additional capital from CDFIs or other lending institutions.