Tell SBA to support co-ops through their loan guarantee programs!

The federal government is currently updating regulations for programs across several departments, including a few which address access to financing for cooperatives. The USFWC has worked with partners to articulate and vet responses to these updates to ensure co-ops have continued and expanded access to financial options.

There’s still one opportunity left for advocacy this year – we ask you to submit comment and tell the Small Business Administration to ensure co-ops can access their loan programs. 

SBA has invited comment on a proposed rule update on SBA business loan programs which would allow borrowers to use 7(a) loans all or part of a business.

However, the proposed rule fails to address SBA’s personal or equity guarantee requirement within 7(a) lending programs. SBA requires a “personal guarantee” from an owner with a 20 percent stake in the business to receive the small business loan guarantee.

This keeps co-ops from receiving guaranteed loans in the same manner that standard small businesses can. In the cooperative business model, no member typically owns more than a 20 percent stake in the business, meaning the personal guarantee effectively bars cooperatives from accessing this program despite being explicitly listed as an eligible entity. For more information on the personal guarantee, click here.

Here are the two important actions to complete by December 27:

  1. Sign on to this comment letter as a supporter of removing SBA’s personal guarantee requirement
  2. Submit your own comment letter using this template as a supporter of removing SBA’s personal guarantee requirement (yes, doing both helps!)

A few minutes of your time can make a huge difference in making sure co-ops have access to financing.

If you have any questions, email Aaliyah Nedd, NCBA CLUSA Government Relations Manager at or Mo Manklang, USFWC Policy Director at


Spread the word

Share the following or retweet the USFWC’s post:

Co-ops need financing just like any other small businesses – tell the @SBAgov and @USTreasury to ensure their programs serve ALL #smallbiz, including #coops by Dec 19 


Posted in USFWC News.