Cooperative Banking as the Catalyst for Community and Economic Development FAQ's

Greater Cleveland Cooperative Federal Credit Union (Co-sponsored by NLEH, Inc.) FAQ’s

Q. Why is owning and controlling a bank so important?

A. Because having access to capital is the best way to enfranchise yourself. Without access to capital, you cannot turn your plans into institutions, businesses or acquire the “means of production” or raw materials necessary to produce or deliver services to the market.

Q. Why is a “Cooperative Bank” the best form of bank for low income, underserved areas or new markets?

A. Because a “Cooperative Bank” lowers the “Cost of Capital,” meaning that the interest rate and profit margin normal banks add to the principle a borrower may borrow, is lowered or eliminated, thus making the total debt less. This makes all loans issued by the bank easier and quicker to pay off, which increases a small businesses success rate. Additionally, a “Cooperative Bank” distributes any profits it makes to its depositors/members. Further, “Cooperative Banks” are missioned to prioritize the financial and economic needs of its membership.

Q. Why should I support the Greater Cleveland Cooperative Federal Credit Union? It will not be located in my area.

A. There are several reason why supporting this particular “Cooperative Bank”/credit union is worthwhile to local and non-local residents;

1.       Intrinsic Good. It is a good cause and a not-for-profit business that will help low income and underserved persons build wealth.

2.       Personal Savings Plan. Any donation $25 and over receives either a non-member (non-resident) or a membership deposit certificate which can be redeemed for the opening of a savings account of equivalent value.

3.       Competitive Investment. Investment in the “Pre-Small Business Development and Investment Fund” is a short-term, higher interest loan with a double principle payoff.

4.       Rhizomic Growth. This project and business unit is an economic kernel that will grow by funding the duplication of itself in other low income and underserved areas across the country. The respective parts of; a Cooperative Bank, a Small Business Investment Company and a Risk-Mitigated Fund, while autonomous, will work as one economic unit to jump start development in even the most economically depressed areas. This is because capacity-building, technical and financial support is built into the business model and therefore it facilitates any individual or group anywhere, willing to serve their community and their own economic  interests through entrepreneurship. So although this project may not START in your area, because of you support, this project will soon BE in your area.

"IN ORDER TO 'PULL YOURSELF UP BY YOUR BOOTSTRAPS' ONE FIRST NEEDS BOOTS."

Please click the link to find out how you can support this project (Donate, Invest or Volunteer); http://anddirect.net/current-events/community-and-economic-development-as-a-private-placement-memorandum-type-investment-vehicle/