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EQUAL EXCHANGE & OUTSIDE FINANCING Using conventional tools to achieve an unconventional goal. Sources of Capital. workers - profits - investors - debt. The Equal Exchange CD. Originally Wainwright Bank, now Eastern 3-year CD, market rate, FDIC insured $500 minimum
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EQUAL EXCHANGE &OUTSIDE FINANCINGUsing conventional tools to achieve an unconventional goal
Sources of Capital workers - profits - investors - debt
The Equal Exchange CD • Originally Wainwright Bank, now Eastern • 3-year CD, market rate, FDIC insured • $500 minimum • Up to 90% available to EE as line of credit • Available to EE at approx. 2% • Depositors on hook if we default
Mission Lending • Unsecured Promissory Notes • 12 loans $25k-$100k • 2-5% interest • Institutions that support our model • Calvert Foundation -- $1 million • RSF Social Finance
Class A Shares • Every worker buys one & only one share • Approx $3,500 per share • Redeemed when you leave the co-op
Class B Shares • Fixed price (no capital gains) • Modest dividend • Hold for minimum of 5 years • NO voting rights • ~$11.5 million now (including >$1 million from workers)
How do you sell them? • Private Placements or Direct Public Offering (DPO) • Reg D, 506 exemption • Higher disclosure if selling to the 98% • Outreach to supporters, Advisors, Brokers
