Frequently Asked Questions

 

- The Community Investment Campaign

- Investment Loans

- Donations

- The project at 204 W. Market St. in West Chester, PA

​

The Community Investment Campaign

 

What is the Community Investment Campaign?

The West Chester Cooperative’s Community Investment Campaign is a capital campaign focused on raising money to renovate, stock, staff, and open our cooperative grocery store at 204 E. Market St. in West Chester. “Capital” means property or assets, something that is owned. And a “capital campaign” is an effort by an organization to raise significant dollars in a specified period of time in order to fund a one-time need—in this case, our community-owned WC Co-op Grocery Store.

 

Why do we need to conduct the Community Investment Campaign?

Cooperatives, because of their unique legal structure, have the ability to raise capital from member-owners through investments, such as loans, as well as donations. On average, food co-ops raise about 50% of the capital required to open their doors from member-owners. Capital from member-owners is less expensive and more flexible than bank financing, and it allows member-owners the opportunity to exercise the cooperative principle of Economic Participation. West Chester Co-op member-owners can make investment loans and charitable gifts during the campaign to fund the opening of our community-owned grocery store.

 

What about the payment I made to become a member-owner?

Becoming a member-owner is a terrific first step that gives you an equal vote, the opportunity to become a Board member, input into how the store is governed, and the potential to receive patronage dividends once the store is profitable. Member-owner shares funded our initial expenses but only represent about 14% of the total $1.8 million cost to open our doors. 

 

As a member-owner, you have an exclusive opportunity to invest further in your community-owned grocery store, your community, and your values, while earning a return on your money. Member-owner loans are a long-standing mechanism used by food co-ops to raise the money needed to open our doors. Loans demonstrate a loyal customer base and reduce debt service, making the WC Co-op stronger. Donations to the Co-op further strengthen our financial position in that they do not require interest payments. Invest locally in Market Street instead of Wall Street.

How much money is needed and when is it needed?

Our Community Investment Campaign goal is to raise $900,000 or more through May 31, 2025. $900,000 represents approximately 50% of our overall budget ($1.8 million) to open the WC Co-op Grocery Store. The May 31 deadline keeps us on track for opening our doors in 2025.  

 

Overall budget sources: $1.8 million

50% Member-Owner investment loans and donations

14% Member-Owner Equity

6% Grants, Subsidies, Sponsorships

30% Business Loans

 

How will the money be used?

Investment loans and donations fund store renovations, hire staff, purchase equipment, stock the shelves, and ensure that the store can operate smoothly. Our Investor Packet includes detailed information about the uses of funds raised through the Community Investment Campaign. Please email us at invest.wcfood@gmail.com to request a copy.

 

Overall budget uses: $1.8 million

25% Interior Improvements (Renovations)

24% Equipment

6% Inventory

12% Project Fees, Site Expenses, and Consultant Services

9% Staffing and Pre-/Post-Opening Expenses

24% Operating Capital and Contingency Reserve

 

What about the rest of the money needed to open the store?

Our Community Investment Campaign goal is to raise $900,000 or more through May 31, 2025. $900,000 represents approximately 50% of our overall budget ($1.8 million) to open the WC Co-op Grocery Store. The rest of the money comes from a combination of new member-owner shares; grants, subsidies, and sponsorships; and commercial bank loans.

 

Any money raised above the Campaign’s goal of $900,000 means less money we must borrow from banks. Furthermore, our access to federal grant monies is increasingly uncertain due to recent changes in oversight of those grant funding sources.

 

Finally, money raised through new member-owner shares also plays an important role. This is why it is so important to encourage friends, family, and neighbors to join now instead of waiting for the store to open. 

 

I want to support the Community Investment Campaign. What are my options?

• Investment Loans:

Member-owners 18 and older who reside in Pennsylvania can make an investment loan starting at $2,500 and earn interest. Please email us at invest.wcfood@gmail.com to request an investor packet.

• Donations:

Donations are welcome from any individual or business (no restrictions) and provide the most benefit if given by check or cash directly to the West Chester Cooperative. We also accept credit and debit card payments through PayPal: “West Chester Food Coop” https://www.paypal.com/donate/?hosted_button_id=4NT27UYV5628S.

Contact us for other payment options: invest.wcfood@gmail.com.

 

PayPal Link:  https://www.paypal.com/donate/?hosted_button_id=4NT27UYV5628S&source=qr

 

Tax-deductible donation options are available through our nonprofit fiscal sponsor, which charges an additional processing fee. Through our nonprofit fiscal sponsor, we can also accept Qualified Charitable Distributions and distributions from Donor Advised Funds. Please visit the Donate page on our website for more information: https://www.westchester.coop/tax-deductible-donation.

 

Note: Member-owner loans have the potential to pay interest. As with any investment, member-owner loan opportunities also have risk. If for any reason extending a member-owner loan does not work for you, please consider making a regular or tax-deductible donation.

 

Can a business make an investment loan or donation?

Yes! Businesses that own member-owner shares in the West Chester Cooperative can make a loan in the name of the business. Any business can make a donation.

 

What if I don’t have money for this investment available right now?

Member-owner investment loans are only available through May 31, 2025. You must at least begin the investment-loan process before this date.

 

Donations to support the Community Investment Campaign can be made in equal monthly payments through the end of 2025. 

 

We will continue to accept donations to the West Chester Cooperative after the May 31 Campaign deadline. More information available at https://www.westchester.coop/tax-deductible-donation.

 

Will I be recognized for my financial contribution?

The WC Co-op Grocery Store will include permanent recognition for all who participate financially in this Community Investment Campaign. The West Chester Cooperative will honor the wishes of anyone who would prefer to remain anonymous.

How else can I help to make the West Chester Cooperative a success?

Thanks for asking! There are several ways that you can help:

• Encourage family, friends, and neighbors to join the West Chester Cooperative today! Money raised through new member-owner shares is crucial to our project as well.

• Like and share our social media posts (Facebook and Instagram) and help spread the word with everyone you meet.

• Volunteer on one of our many committees and consider running for a position of the Board. More information about volunteering available at https://www.westchester.coop/volunteer. 

• Shop regularly at the WC Co-op grocery store once it opens.

​

Investment Loans

 

What are Member-Owner Investment Loans?

Member-Owner Investment Loans are the co-op borrowing money from YOU (our Member-Owners) instead of borrowing money from the bank. 

 

What are the terms of Member-Owner Investment Loans?

The following are highlights of the loan terms. Please see our Investor Packet for a sample loan agreement containing the full loan terms. Please email us at invest.wcfood@gmail.com to request a copy.

• The minimum loan amount is $2,500. There is no maximum. 

• Loans to the West Chester Cooperative carry a 15-year term, meaning that we intend to fully repay the loan by year 15.

• Simple interest on the Loans will be paid annually on the principal balance outstanding during each year of the Loan’s term. Principal repayment will begin in year 11; twenty percent (20%) of each loan’s principal amount will be repaid at the end of years 11 through 15, such that the loan’s principal and interest, collectively, will be fully repaid at the end of year 15.

​

What rate does the co-op pay on loans? 

The interest rate paid on loans is dependent on the amount of the loan. A range of interest rates apply to each loan level. That range gives the lender the opportunity to be flexible with the co-op and choose a lower interest rate to further benefit the co-op. See the chart below for specific interest rates. 

 

Loan Terms:          

Loan Amount  $2,500 - $19,999          Interest Rate    0% – 2.5%          Term of Loan   15 years 

Loan Amount  $20,000 - $49,999        Interest Rate    0% – 3.0%          Term of Loan   15 years   

Loan Amount  $50,000 - $74,999        Interest Rate    0% – 3.5%          Term of Loan   15 years            
Loan Amount  $75,000 +                     Interest Rate    0% – 4.0%          Term of Loan   15 years            
 

How do I move forward with making a Member-Owner Investment Loan?

Reach out to us at invest.wcfood@gmail.com and one of our investment campaign members will provide you with an Investor Packet and answer any questions.

 

1. Read the Investor Packet carefully. It contains a sample of the loan agreement that you and the co-op will sign electronically. It contains a sample of the promissory note the co-op will sign. It also contains our required disclosures of the risks of this investment and financial projections. 

2. Decide your loan amount and loan terms. We’re happy to discuss your options and any questions you may have. Selecting low or zero interest on your loans are extremely beneficial to the co-op. (Optionally, donations will skip the paperwork and are the best way to support the co-op.)

3. Complete the required paperwork. Once you let us know the amount and interest rate of your loan we’ll confirm other relevant details (name, co-signer if desired, etc.) and will transmit the legal paperwork for your signature via DocuSign.

4. Write a check. Make a check payable to West Chester Cooperative and mail to West Chester Cooperative, P.O. Box 3502, West Chester, PA, 19381. If you’d like to submit payment via ACH transfer directly from your bank account, please contact us at invest.wcfood@gmail.com. A signed Promissory Note will be emailed to you to complete the process.

 

Can I pay for my loan with a credit card?

No, you cannot fund your loan with a credit card. The fees associated with credit card processing make it an unreasonable option for the co-op. (Donations made via credit card are acceptable.)

 

What if I don’t have the minimum investment amount available for a loan?

Please consider making a donation. Donations directly to West Chester Cooperative, or tax-deductible donations through our nonprofit fiscal sponsor, are welcome anytime. Donations to support the Community Investment Campaign can be made in equal monthly payments through the end of 2025.

 

Can I get my money back before the loan is due?

You should not expect to get your principal balance back early. You can contact the Board if you have extreme circumstances. Any early return is at the Board’s discretion.

 

The West Chester Cooperative may, in its sole discretion, prepay any loan before its stated due date together with interest accrued to the prepayment date. No penalty or additional interest will be due in the event of such a discretionary prepayment by the Co-op.

 

Simple interest on the Loans will be paid annually on the principal balance outstanding during each year of the Loan’s term. Principal repayment will begin in year 11; twenty percent (20%) of each loan’s principal amount will be repaid at the end of years 11 through 15, such that the loan’s principal and interest, collectively, will be fully repaid at the end of year 15.

 

Is my money safe if I choose to lend it to the Co-op?

As with any investment, there are risks to lending to the West Chester Cooperative. It is important that you read the Offering Memorandum in the Investor Packet and understand the risks involved with a loan.

 

The West Chester Cooperative Board of Directors studied the factors that contribute to co-op success and sought the advice of legal and industry experts to help limit risk. It’s always a good idea to consult with your financial planner or accountant before investing.

 

What legal assurances are in place for my loan?

Member-Owner loans are legal in the state of Pennsylvania. The West Chester Cooperative contracted with an attorney specializing in co-op law to prepare the loan paperwork.

 

What happens if we don’t reach our goal?

We fully anticipate meeting and exceeding our goal. However, if we fall short, the Board of Directors reserves the right to extend the Community Investment Campaign, initiate additional capital campaigns until our goal is reached, and/or modify the scope of our project.

 

If our store opening is delayed, possible consequences include unbudgeted expenses, such as additional months of rent and the possibility of increased equipment and renovation costs. Not meeting our goal may put the co-op’s financial stability at risk. Starting any business has risk, and starting a business without adequate capital reduces the chance of success.

 

If I move, what happens to my loan?

No problem. Simply update your address with us when you move. We will continue to communicate with you and make sure you receive up-to-date information about your loan after you move. The Pennsylvania residency requirement only applies when you initially make a loan.

 

What happens to my loan if I pass away?

We encourage you to keep loan documents with your estate so your family members are aware of the loan. We encourage you to consult with your estate planning adviser. A successor to the lender may assume the rights and obligations of the lender through the ordinary settlement of the lender’s estate.

A joint subscriber can be designated on the investment agreements so when the cooperative is notified about the deceased, the investments will transfer to the joint subscriber. 

​

Donations

 

Who can make a donation?

Any person, business, organization, or foundation who wants to support the West Chester Cooperative and/or the Community Investment Campaign can make a donation. Tax-deductible options are available. You do not need to be a Member-Owner in order to donate.

 

Is my donation tax-deductible?

Yes, tax-deductible donation options are available through our nonprofit fiscal sponsor, which charges an additional processing fee. Through our sponsor, we can also accept Qualified Charitable Distributions and distributions from Donor Advised Funds. See the Donate section of our website for specific directions to make a tax-deductible donation: https://www.westchester.coop/tax-deductible-donation.

 

However, non-deductible donations are welcome and provide the most benefit if given by check or cash directly to the West Chester Cooperative. We also accept credit and debit card payments through PayPal: “West Chester Food Coop” https://www.paypal.com/donate/?hosted_button_id=4NT27UYV5628S. Please email us at invest.wcfood@gmail.com if you want to use other payment methods, such as ACH transfer directly from your bank account. 

 

PayPal link: https://www.paypal.com/donate/?hosted_button_id=4NT27UYV5628S&source=qr

 

If you are donating by check, please make it payable to West Chester Cooperative and mail it to:

West Chester Cooperative

P.O. Box 3502

West Chester, PA, 19381

 

Can I use a credit card to make a donation?

Yes, although that is not our preference. We can accept credit card donations. However, various processing fees reduce the financial benefit of using this payment method. We prefer that you make donations by check.

 

Can I make a donation directly from my IRA or Donor Advised Fund?

Yes. Our non-profit fiscal sponsor can accept Qualified Charitable Distributions and distributions from Donor Advised Funds. Please email us at invest.wcfood@gmail.com for more information.

 

Can my employer match my donation?

Yes. If your employer has a charitable donation match program, that's a terrific way to multiply your impact. Please email us at invest.wcfood@gmail.com to get started.

 

When are donations due?

We ask that you submit your donation as soon as possible. Donations to support the Community Investment Campaign should be made before the campaign ends on May 31, 2025. Alternatively, pledged donations supporting the Community Investment Campaign can be made in equal monthly installments through December 31, 2025. Please email us at invest.wcfood@gmail.com for more information.

 

Ongoing donations or periodic donations directly to the West Chester Cooperative are welcome anytime.

 

The Project at 204 W. Market St. in West Chester, PA

 

Was a market study completed?

Yes. The result is a successful business projection for our location at 204 W. Market St., in West Chester, PA.

 

Several site evaluations and sales forecast analysis studies were performed from 2016 through 2024 by G2G Research Group. G2G is a consulting company that works with food cooperatives and other companies regarding store deployment strategies that optimize store sales performance. 

 

Details from these evaluations are available upon request. Please email us at invest.wcfood@gmail.com to request more information.

 

Where is the WC Co-op Grocery Store located?

Our location is 204 W. Market St., West Chester, PA. We signed a multi-year lease in 2024 and began paying rent in 2025.

 

Why did we choose this location?

Our highly visible location satisfies multiple criteria we set for our store, including accessibility, parking, delivery/pickup access, and adequate square footage to support a full-service grocery store in the West Chester Borough.

 

The future store is accessible from all directions and by multiple forms of transportation. Parking is available next door at a Chester County parking garage, which has free parking options, and at a nearby West Chester Borough surface parking lot. This store also is located next to a SEPTA regional transportation hub. 

 

An average of 7,100 vehicles each day pass by our highly visible location. We are located directly across from the seven-story Chester County Justice Center. Additionally, many WC Co-op Member-Owners and West Chester University students and faculty live in close proximity.

 

The West Chester Cooperative had been searching for an adequate and affordable location in the highly competitive West Chester commercial real estate market for more than eight years. When the 204 W. Market St. location became available in 2024, the Board took the initiative to secure a lease before launching our Community Investment Campaign.

 

When will renovations start?

Architectural drawings and store plans are completed. Activities like securing necessary permits, evaluating our equipment needs, vetting construction contractors, and preliminary work to hire our store GM and staff are underway. Renovations will begin as early as Spring 2025, once adequate funding is in place, which includes reaching our Community Investment Campaign goal of $900,000+.

 

When will the WC Co-op Grocery Store open?

We are on track to open in 2025, if we are able to meet our funding goal by May 31, 2025.

 

Can you describe the store and what products are available?

The WC Co-op Grocery Store is approximately 3,900 sq. ft., with approximately 2,700 sq. ft. dedicated to retail shopping. This size allows West Chester Cooperative to operate a full-service neighborhood grocery store that can compete effectively within the trade area.

 

The store will be stocked with healthy and sustainable items, with an emphasis on locally sourced produce and household goods whenever possible. The co-op will offer fresh vegetables and fruits, bulk goods, meats, household products, wellness products, frozen foods, and prepared grab-n-go items. 

 

Can anyone shop at the WC Co-op grocery store?

Yes. The store is open to everyone to shop.

 

How is our store different from other area grocery stores?

The West Chester Cooperative’s focus on community, supporting local sustainable and regenerative food producers, commitment to product transparency, and consumer education set it apart from competitors.

 

The unique community-owned, cooperative business model is another key differentiator that strengthens the overall business plan and our local economy.

 

Where can I learn more about The West Chester Cooperative and food cooperatives in general?

Visit our website at https://www.westchester.coop/ for more information.