Worker shareholder cooperative financing

This type of financing, in the form of a non-guaranteed loan, is for worker shareholder cooperatives (WSC) to take advantage of financing to begin or to grow their participation in the equity of the company that employs its members. The establishment of a WSC is a big part of a partnership strategy which allows employees, via the cooperative which they are part of, to actively participate in the growth and performance of the business.

Main features

• Amounts of more than $250,000

• Interest rate determined by the level of risk of the business

• Normal investment horizon between 3 to 8 years

• Repayment pause possible according to need

• Financing up to 100% of project cost, when Desjardins is also holding company equity

• Fees for initializing and follow-up process

Admissibility criteria

• A cooperative including worker-members with the same employer and whose payroll costs represent more than 80% of that of the business

• A company:

– operating in a sector of activity matching the investment policies of Capital régional et coopératif Desjardins

– offering competitive products and services and providing opportunities for growth

– with a dedicated management and executive team looking for a business partner

– apt to adopt policies favouring clean and prudent management of the cooperative

Project goals

• Acquisition of an initial equity stake in the company

• Acquisition of an additional equity stake

• Support during a refinancing of the business in which the WSC holds equity