Please describe any plan for a member loan - Food Co

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SPROUT FUND
APPLICATION
Please read the guidelines carefully before completing this application to be approved for the
Sprout Fund loan program. Please answer the questions fully in the space provided. Use the
Concept Narrative to provide background information.
Organization:
Contact Person:
Address:
City/State/Zip:
Telephone:
Email Address:
Web Address:
I/We submit this application for consideration and qualification for the Sprout Fund:
(Must be a co-op or intend to form a co-op in order to be considered)
Total Amount of Loan Requested:__________________________
(up to $25,000.00; must be matched 1:1 by your co-op)
Proposed Use of Funds
Anticipated Outcome of Use
Cost
Authorized Signature:
Date:
Please submit this cover sheet, along with the attached Concept Narrative to:
Stuart Reid
stuart@foodcoopinitiative.coop
FCI SPROUT LOAN APPLICATION
PAGE 1 OF 5
CONCEPT NARRATIVE
Please respond to the following in a separate document and list the responses in the same order
as the items below. Submit the complete Concept Narrative by e-mail to:
stuart@foodcoopinitiative.coop
I. VISION
A. VISION
Please state the vision and mission of the cooperative. Please explain how the cooperative will
be committed to growth and to serving the broader community as part of serving the needs of
the members.
B. VISION PROCESS
Please describe how the vision and mission statement has been adopted by the leadership of the
co-op, with appropriate member input, and how the vision and mission statement has been
critiqued by external expertise.
C. INDUSTRY SUPPORT
Please describe the relevant and ongoing contacts that leadership has made in the national food
co-op community, including nearby food co-ops, National Cooperative Grocers Association,
Cooperative Grocers Information Network, Cooperative Grocer magazine, National Cooperative
Bank, Cooperative Development Services, and other cooperative support organizations.
D. COOPERATIVE PRINCIPLES & VALUES
Please describe how cooperative principles and values are central to the vision of the co-op and
any ongoing efforts to educate the members and the community about cooperative principles
and values.
E. COMMUNICATIONS
Please describe efforts to work with relevant individuals and organizations in the local and
regional community. Please describe any promotion activities. Is public awareness in the local
community and enthusiasm for the co-op in the community evident? Is the vision and mission
of the co-op visible to the members and the community?
F. DEVELOPMENT PROCESS & COSTS
Please describe how the board of directors & management have a realistic overview of the
planning and implementation of new co-op development. Is the leadership aware of the overall
costs and investment required to achieve the vision? Does the leadership have a clear
understanding and stated expectations of what is to be accomplished, the process to accomplish
it, clear delegation and oversight systems and a monitoring/measurement system?
FCI SPROUT LOAN APPLICATION
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II. TALENT
A. BOARD ROLES & SKILLS
Please describe the leadership of the co-op. Has the steering committee formally become the
board of directors of the incorporated cooperative and do they understand the changing roles
and responsibilities? Please describe the skills brought to the co-op by the leadership:
organization and planning, outreach and networking, research, fundraising, facilitation and
meeting planning.
B. BOARD COMMITMENT
Please describe how the board of directors demonstrates a visible commitment to the project, to
potential members and their needs, and to the group and each other.
C. DELEGATION
Please describe how the board of directors delegates responsibility while ensuring authority and
accountability for what was delegated. Please describe efforts to seek and obtain external
advisors for review and critique.
D. DEVELOPMENT MANAGER
Please identify any person serving as the qualified development manager and describe the
technical ability and expertise of the person, as well as how that person is accountable to the
board of directors.
E. DECISION-MAKING PROCESS
Please describe the process used by the leadership to make decisions.
F. EXTERNAL ADVISORS
Please describe any work with qualified external advisors to provide review and critique,
challenge assumptions, and bring expertise and experience in business development,
cooperative development and food industry to the group.
G. CAPACITY
Please describe how the organization as a whole has the people it needs for success, including
how synergy among the board of directors, management, members and community has been
demonstrated. Is there alignment, leadership stability, ability to attract and retrain needed
talent (paid and volunteer), shared vision and growing enthusiasm and momentum?
FCI SPROUT LOAN APPLICATION
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III. CAPITAL
A. CAPITAL PLAN
Please describe how the board of directors has identified resources needed, including time,
money, and external support, including how they will be accessed and used in appropriate ways?
Is there evidence of the ability to be prudent in using resources but able to invest as needed in
research and/or external support? Does the board of directors understand and is it committed
to its leadership role in raising capital through member loans? Is the board of directors as a
whole willing to lend a percentage of the total member loan goal and is it able to conduct the
loan drive?
B. CAPITAL FORMATION
Please describe the results of efforts to raise capital. Please describe any fundraising activities
already implemented. Have members & supporters invested their own money, time, and
resources as needed and are they willing to invest more?
C. MEMBER EQUITY
Please describe any member equity plan. Is the plan based upon a vision of the co-op’s longterm capital needs, the average shareholder’s capacity to invest, government regulations, and
the co-op’s bylaws/governing documents? Has the member equity plan been critiqued by
external expertise and is it consistent with best practices for consumer co-ops?
D. MEMBER LOANS
Please describe any plan for a member loan drive. Does it include specific goals, written
materials, legal review, timeline and defined roles? Is it ready to launch at the appropriate
time?
FCI SPROUT LOAN APPLICATION
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IV. SYSTEMS
A. PLANNING
Please describe the planning process for your cooperative. Please describe how the planning
reflects in-depth research, the ability to identify and test assumptions and sound and timely
decision-making. Please describe how the leadership sought external reviews and honest
critiques of plans and strategies. Please describe evidence of organizational commitment to
research, education, planning, assessment and continuous improvement.
B. GOVERNANCE
If the organization has been incorporated and if bylaws have been drafted, please provide copies
of the articles of incorporation and bylaws.
C. TRAINING
Please describe any training systems in place for clarifying next steps and adopting best
practices.
D. MARKET ASSESSMENT
Please describe the results of a preliminary market assessment that includes consideration of a
store format definition, trade area definition, population of trade area, demographics, and
competitors. Please describe the process for determining viable locations for the store. Please
describe any member/customer research that is planned and budgeted to provide relevant and
statistically significant information for the business plan.
E. FINANCIAL MANAGEMENT
Please describe any accounting system in place and the qualifications of the person(s)
overseeing it. Please show how current financial reports demonstrate appropriate and controlled
spending.
F. FINANCIAL PLANNING
Please provide a budget (Sources and Uses), timeline and plan for the feasibility and business
planning stage. Please show how the member equity and loan goal amounts correspond with
budgets.
G. COMMUNICATIONS & MEMBERSHIP DEVELOPMENT
Please describe any system in place outlining members benefits and responsibilities and
promoting the importance of member equity in establishing the sustainability of the co-op? Is
membership information included in a marketing plan and promotional materials? Are
communications from the co-op to members and the broader community regular and
appropriate?
H. OPERATIONAL FEASIBILITY
Please describe the leadership’s understanding of real estate, leasing and store operations,
including the need to establish a supply chain. Please describe any plan in place to test the
feasibility of key components of the business operation.
FCI SPROUT LOAN APPLICATION
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