Introducing the New Economy of Tennessee Fund
Imagine you could build a new economy for your community. How might it look?
Maybe it would be easier to start a business, because accessing startup funding doesn’t require a credit score or risking your home to secure a likely high-interest loan.
Maybe employees would own an equal piece of the business they work for and have an equal say in how decisions are made.
Maybe the ability to start a business or find work wouldn’t be inhibited by race, gender, immigration status, age, net worth, or criminal record.
In January 2020, Free Hearts and the Southeast Center for Cooperative Development launched the New Economy of Tennessee (NET) Fund to transform this vision into a reality for Tennessee and address the problems of poverty and inequality by providing non-extractive funding for cooperative businesses.
Cooperatives are businesses owned and governed by and for their employees (members) rather than their shareholders. By distributing ownership and profits among members, cooperatives act as powerful and proven vehicles for community wealth generation.
Successful examples abound across the United States (Weaver Street Market - NC, Equal Exchange - MA, Cooperative Home Care Associates - NY) and in the southeast (Lulu’s Food - TN, Pecan Milk Cooperative - GA, C4 Tech & Design - LA). However, starting a new cooperative can still be challenging because traditional lenders are not yet well-versed in cooperative evaluation and investing.
The NET Fund will address this gap by:
Supporting the funding and financing of employee-owned cooperatives
Offering technical assistance (legal services, recruitment, business plan development, governance and board training, etc.) for cooperative creation and conversion
Educating the public and potential founders/members through in-person and online classes, webinars and workshops
Building a network of mutually supportive cooperatives
We are actively soliciting applications, learn more and submit your idea here.
All applications will be reviewed by our board members who are composed of entrepreneurs and community organizers across Tennessee.
We encourage you to learn more about employee-owned cooperatives by signing up for our newsletter and look forward to building a new, more inclusive economy with you!
Free Hearts is an organization led by formerly incarcerated women that provides support, education and advocacy in organizing families impacted by incarceration.
The Southeast Center for Cooperative Development is a nonprofit organization that supports workers’ shared ownership and control of cooperative enterprises.