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 PAGE 2 OF 5 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 PAGE 3 OF 5 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 PAGE 4 OF 5 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 PAGE 5 OF 5