Below is a description of USDA’s loan guarantee program for the conversion of rural businesses to worker ownership. This promising, but underutilized, program has the potential to open up previously inaccessible funding for the often costly task of transitioning a business to a worker cooperative.
Related Resources
Think Outside Boss: How to Create a Worker Owned Enterprise
Think Outside the Boss is a workshop and manual for worker cooperatives, co-created by the Sustainable Economies Law Center and the East Bay Community Law Center. Overview of Manual and Workshop Manual “Think Outside Boss: How to Create a Worker-Owned Enterprise” is a comprehensive guide that offers a wealth of resources, including definitions, templates, example
Select Machine Selects the Right Conversion Approach to Avoid Layoffs
Legal Case Study: Select Machine Select Machine is an Ohio-based firm that manufactures, sells, and distributes custom parts for demolition and construction equipment. It was founded in 1994 by Doug Beavers and Bill Sagaser. They chose to convert their business when they were ready to retire to avoid laying off their employees. Exploring Cooperative Conversion
How Cooperatives Are Structured
Cooperatives are member-owned and democratically controlled businesses that distribute profits based on an equitable patronage system. Cooperatives are structured by type of cooperative, the tax status and the legal entity that is chosen by its members. The decision depends on the mission and needs of the co-op. Difference between Co-op Type, Legal Entity and Tax
