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Cooperatives: The Washington (and Beyond) Perspective By Adam Schwartz Vice President of Public Affairs & Member Services ...
Washington, DC aka Disney on the Potomac
NCBA’s Mission To Develop, Advance & Protect Cooperatives from all Sectors
Connecting Co-ops Media Other  Co-ops   General  Public Government Co-ops
NCBA Benefits
The Seven Cooperative Principles <ul><li>Voluntary and open membership  </li></ul><ul><li>Democratic member control  </li>...
U.S. Data on Cooperatives <ul><ul><li>29,284 cooperative firms  </li></ul></ul><ul><ul><li>72,993 establishments </li></ul...
THE BIG PICTURE
Connecting Indiana Co-ops to all Cooperatives  Indiana Cooperatives  State Affiliates ICA Globally Connected NCBA Other Na...
NCBA’s Overall Public Policy Priorities <ul><li>Secure Private and Public Sources of Funding for Cooperatives  </li></ul><...
NCBA and Capitol Hill
Health Care and Co-ops
Types of Health Care Cooperatives <ul><li>Consumer Owned </li></ul><ul><li>Worker Owned </li></ul><ul><li>Purchasing by Sm...
The Current Health Care Bill
Small Business Administration Developments <ul><li>H.R. 3854 Small Business Credit Expansion Act 2009 </li></ul><ul><li>Pa...
Rural Cooperative Development Grants <ul><li>$11.4 million in total funding </li></ul><ul><li>Includes $300,000 for contin...
The National Co-op Directory <ul><li>NCBA working with several partners to create an on-line directory of all 29,000 coope...
EQUITY FUND FOR COOPERATIVES <ul><li>GOALS: </li></ul><ul><ul><li>To create an investment vehicle that will allow individu...
CREATE ACCESS TO CAPITAL Outside Private Capital Cooperatives— and other businesses— that  Receive At Risk Capital   Publi...
Cooperative Ownership of Fund  Example with CDF-issued Co-op Investment Note Fund Manager Origination Monitoring Servicing...
Working with Your Public Officials <ul><li>Invite Candidates/Legislators to: </li></ul><ul><ul><li>Annual Meeting </li></u...
THANK YOU Adam Schwartz [email_address] www.ncba.coop
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Cooperatives: The Washington (and Beyond) Perspective

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Cooperatives: The Washington (and Beyond) Perspective

  1. 1. Cooperatives: The Washington (and Beyond) Perspective By Adam Schwartz Vice President of Public Affairs & Member Services National Cooperative Business Association [email_address] www.ncba.coop
  2. 2. Washington, DC aka Disney on the Potomac
  3. 3. NCBA’s Mission To Develop, Advance & Protect Cooperatives from all Sectors
  4. 4. Connecting Co-ops Media Other Co-ops General Public Government Co-ops
  5. 5. NCBA Benefits
  6. 6. The Seven Cooperative Principles <ul><li>Voluntary and open membership </li></ul><ul><li>Democratic member control </li></ul><ul><li>Member economic participation </li></ul><ul><li>Autonomy and independence </li></ul><ul><li>Education, training and information </li></ul><ul><li>Cooperation among cooperatives </li></ul><ul><li>Concern for the community </li></ul>
  7. 7. U.S. Data on Cooperatives <ul><ul><li>29,284 cooperative firms </li></ul></ul><ul><ul><li>72,993 establishments </li></ul></ul><ul><ul><li>2 million plus jobs </li></ul></ul><ul><ul><li>$652 billion plus in revenue </li></ul></ul><ul><ul><li>$133.5 billion in income </li></ul></ul><ul><ul><li>$3 trillion in assets </li></ul></ul>
  8. 8. THE BIG PICTURE
  9. 9. Connecting Indiana Co-ops to all Cooperatives Indiana Cooperatives State Affiliates ICA Globally Connected NCBA Other National Organizations
  10. 10. NCBA’s Overall Public Policy Priorities <ul><li>Secure Private and Public Sources of Funding for Cooperatives </li></ul><ul><li>Promote Co-op Development </li></ul><ul><li>Defend the Co-op Model of Business </li></ul>
  11. 11. NCBA and Capitol Hill
  12. 12. Health Care and Co-ops
  13. 13. Types of Health Care Cooperatives <ul><li>Consumer Owned </li></ul><ul><li>Worker Owned </li></ul><ul><li>Purchasing by Small Businesses </li></ul>
  14. 14. The Current Health Care Bill
  15. 15. Small Business Administration Developments <ul><li>H.R. 3854 Small Business Credit Expansion Act 2009 </li></ul><ul><li>Passed the House ensures all co-ops not organized as tax-exempt may obtain SBA financing </li></ul>
  16. 16. Rural Cooperative Development Grants <ul><li>$11.4 million in total funding </li></ul><ul><li>Includes $300,000 for continued research on economic impact of all cooperatives </li></ul>
  17. 17. The National Co-op Directory <ul><li>NCBA working with several partners to create an on-line directory of all 29,000 cooperatives that you will be able to search by zip code </li></ul>
  18. 18. EQUITY FUND FOR COOPERATIVES <ul><li>GOALS: </li></ul><ul><ul><li>To create an investment vehicle that will allow individuals organizations to invest in a fund that will invest exclusively in cooperatives including credit unions </li></ul></ul><ul><ul><li>Pay investors a market or near market return </li></ul></ul>
  19. 19. CREATE ACCESS TO CAPITAL Outside Private Capital Cooperatives— and other businesses— that Receive At Risk Capital Public Financing Cooperative Capital Cooperative Capital Fund (CCF)
  20. 20. Cooperative Ownership of Fund Example with CDF-issued Co-op Investment Note Fund Manager Origination Monitoring Servicing Senior Debt $2.5 MM Junior Debt $2.5 MM Equity $1.0 MM Worker Co-op (ex: 7% senior) Purchasing Co-op (ex: 10% sub-debt) Consumer Co-op (ex: 8% preferred equity) Producer Co-op (ex: 11% member equity) National Cooperative Equity Fund, LLC (NCEF) $6.0 MM Total Cooperative Dev. Foundation (CDF) Lends to NCEF <ul><li>Retail Investors </li></ul><ul><li>Credit Unions sell charitable CDs </li></ul><ul><li>CU members buy charitable CDs </li></ul><ul><li>CUNA Mutual sells CDF notes </li></ul><ul><li>CU member buy CDF notes </li></ul><ul><li>Proceeds go to CDF </li></ul>Investors Debt Equity / Ownership CO-OP 1 < 25% CO-OP 2 < 25% CO-OP 3 < 25% CO-OP 4 < 25% … Total 100% $1 MM Institutional Investors (Foundations, Banks, etc.) Lend to NCEF Sample Investments $2.5MM 2% 5yrs $2.5MM 3% 5yrs $2.5MM 5% 5yrs $1.0MM Equity Fund Management Fees
  21. 21. Working with Your Public Officials <ul><li>Invite Candidates/Legislators to: </li></ul><ul><ul><li>Annual Meeting </li></ul></ul><ul><ul><li>Tour Your Co-op </li></ul></ul><ul><ul><li>State Co-op Summit </li></ul></ul><ul><ul><li>Programs on the critical issues relevant to Hoosiers </li></ul></ul>
  22. 22. THANK YOU Adam Schwartz [email_address] www.ncba.coop

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