National Cooperative Business Association

White House Briefing on Cooperatives, Jobs and Economy Opens Dialogue with Nation’s Leaders

NCBA-Organized Event Showcases Cooperatives as Trusted Businesses that Empower Americans

WASHINGTON, D.C. (May 8, 2012)– Last week, 150 leaders of the US cooperative community went to the White House with a mission: to let top-level Obama Administration officials know that co-ops are values-based businesses and engines of growth in this economy. During the May 4 White House Community Leaders Briefing on Cooperatives, Jobs and the Economy, these leaders discussed ways that cooperatives generate jobs and contribute to the economy, as well as opportunities for the Federal government to support cooperative enterprises.

The meeting was organized by the National Cooperative Business Association (NCBA) and brought together leaders from all sectors of the cooperative community—including all types of cooperatives (e.g. consumer, purchasing, worker) and cooperative support organizations—from a variety of industries, including agriculture, food, financial, health care, housing, retail and utility.

“We were delighted to be invited by the White House to engage in this dialogue and we hope it will be only the first conversation in an ongoing discussion about the benefits that cooperatives provide to consumers and communities across the country,” said Liz Bailey, interim president and CEO of NCBA. “The meeting was a total success since it created new understanding among senior White House officials about cooperatives and the role they play for consumers, as well as their contribution to the growth of sustainable small businesses and local economies.”

A cooperative is a member-owned and controlled business that operates for the mutual benefit of its members. More than 29,000 cooperatives operate in every sector of the economy and in every congressional district. Americans hold more than 350 million co-op memberships. US cooperatives generate 2 million jobs and make a substantial contribution to the US economy with annual sales of $652 billion and assets of $3 trillion.

NCBA will turn the dialogue with the White House into a nationwide conversation about the power of the cooperative enterprise to bolster the US economy, create jobs and provide stability to local communities. This dialogue will include a series of regional meetings with federal officials and NCBA members on how cooperatives can stabilize and strengthen the economy further.

“In this economic downturn, more Americans are recognizing the benefits of cooperative ownership and business,” Bailey said. “Not only do cooperatives offer consumers affordable choices, but they provide a trusted source of goods and services. Nearly one-third of Americans belong to a consumer cooperative and 72 percent consider cooperatives like credit unions or electric co-ops helpful. That’s a strong base of trust from the American public, and we want to build on it. Our meetings with the White House are meant to open the dialogue about how the federal government can make co-op business ventures easier for American citizens to access.”

NCBA delivered case studies of the success of US cooperative enterprise to the White House and has posted this information to its website.

About The National Cooperative Business Association NCBA

The National Cooperative Business Association is the national association for cooperative businesses providing cross-sector education, support and advocacy to help start and grow co-ops across a variety of sectors, including agriculture, childcare, energy, financial service and credit unions, food distribution, healthcare, housing, retail and telecommunications. For nearly 100 years, our mission has been to develop, advance and protect cooperative businesses demonstrating that cooperatives are a better business model for advancing economic and social impact. For 50 years, we have supported cooperative development globally through our CLUSA International program.

About the International Year of Cooperatives

2012 was named the International Year of Cooperatives by the United Nations. A yearlong celebration of the co-op business model and its positive economic impact across the globe, reminding us that it is possible to pursue both economic viability and social responsibility.

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Individuals to Share Stories of Co-ops Strengthening Local Communities During White House Community Leaders Briefing

WASHINGTON, D.C. (May 3, 2012) – One hundred fifty cooperative leaders from all sectors of the economy and corners of the nation will meet with top policymakers at the White House on May 4 to discuss how their organizations spur economic recovery through job creation and ongoing investments in their local communities.

“Every day cooperatives around the U.S. are stimulating the economy and we are pleased to have the opportunity to discuss our successes in job creation and ways to use the cooperative model to continue to strengthen communities large and small,” said Liz Bailey, interim president and chief executive officer of the National Cooperative Business Association. “Two million jobs are generated each year as a direct result of cooperatives, which illustrates the incredible impact that these organizations have on local economies.”

The event will begin with a briefing by senior Obama Administration officials followed by breakout sessions where cooperative leaders will meet with members of the Administration to discuss small business development, job creation, innovative agriculture programs and financial cooperatives.

Administration officials will hear a number of cooperative success stories including:

• Hope Federal Credit Union, which was organized in 1995 by the members of Anderson United Methodist Church in Jackson, Mississippi, to foster asset development and self-empowerment among low-income residents and to provide an alternative to predatory lenders. The credit union has evolved from a small church project to an organization with 16 branches in four states offering a full array of financial services as well as education and counseling services to traditionally unbanked and under-banked residents in the nation’s most impoverished region.
• Cooperative Care and Home Care Associates, which are worker cooperatives that offer quality in-home care for the elderly, disabled and mentally ill in urban and rural settings. With worker cooperatives, employees participate in the overall management of the organization, which produces high-quality employees who take pride in the organization. The innovative model also reduces employee turnover rates (which can be as high as 50 percent in the industry) and helps move individuals into high paying jobs.
• ROC (Resident-owned Communities) USA, which helps owners of manufactured and mobile homes cooperatively purchase the land beneath their structures, helping to preserve affordable housing for people living on a low or moderate income and enabling them to build wealth. About 17 million Americans live in manufactured homes however many mobile home parks are closing causing low-income homeowners to be displaced. ROC USA is working to ensure that a major sector of affordable housing remains available for these individuals.

There are currently 29,000 cooperative businesses nationwide spanning most industries, including agriculture, energy, financial service and credit unions, food distribution, healthcare, housing, retail and telecommunications. U.S. cooperatives account for more than $3 trillion in assets, over $500 billion in total revenue and $25 billion in wages and benefits.

The White House Community Leaders Briefing is a weekly program that provides a unique opportunity for community leaders to have a dialogue with the White House about issues that are affecting their communities as well as to ensure that they are well informed about government policies and programs and how they can use or maximize these resources.

About The National Cooperative Business Association

The National Cooperative Business Association (NCBA) is the national association for cooperative businesses providing cross-sector education, support and advocacy to help start and grow co-ops across a variety of sectors, including agriculture, childcare, energy, financial service and credit unions, food distribution, healthcare, housing, retail and telecommunications. For nearly 100 years, our mission has been to develop, advance and protect cooperative businesses demonstrating that cooperatives are a better business model for advancing economic and social impact. For 50 years, we have supported cooperative development globally through our CLUSA International Program.

About the International Year of Cooperatives

2012 was named the International Year of Cooperatives by the United Nations. A yearlong celebration of the co-op business model and its positive economic impact across the globe, reminding us that it is possible to pursue both economic viability and social responsibility.

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WASHINGTON, D.C. (May 2, 2012) – Nearly one-third of Americans (29 percent) say they belong to a consumer cooperative and 72 percent of Americans think cooperatives such as credit unions and rural electric co-ops are “helpful to consumers” with only 11 percent saying they are “unhelpful,” according to a new national survey. The survey was developed by the National Cooperative Business Association (NCBA) and Consumer Federation of America (CFA), and was administered to a representative sample of 1,008 adult Americans by Opinion Research Corp International (ORC) on the weekend of April 19, 2012.

“This survey illustrates that the 29,000 cooperatives in this country offer a much-needed alternative that consumers appreciate,” said Liz Bailey, interim president and chief executive officer of the NCBA. “At a time when the entire business community is focused on demonstrating shared value and social responsibility, it’s gratifying to know that Americans continue to place their trust in member-owned, democratically governed cooperative business enterprises.” 

Further, survey respondents rated consumer cooperatives more highly than for-profit businesses on measures of quality and service. Cooperatives outranked for-profits in several areas:

Quality	Co-op	For-Profit
Run Their Business in a trustworthy manner	76%	61%
Have the best interests of customers in mind	74%	52%
Are committed to providing the highest quality of service to their customers	77%	64%
Provide products that are of high value	75%	70%
Can be counted on to meet their customer's needs	79%	67%
Offer fair, competitive prices	77%	70%

"The Consumer Federation of America has long believed that cooperatives offer pro-consumer services and enhance pro-consumer competition in the marketplace,” said Stephen Brobeck, executive director of CFA.  “It is gratifying to learn from this survey that consumers agree with us.”

Consumer cooperatives are owned and democratically controlled by their members – the people who use the co-op’s services – and include credit unions, childcare cooperatives, electric and telecommunications cooperatives, food co-ops, health care co-ops, housing cooperatives and more. Cooperatives return dividends to their members—not to outside investors, as in for-profit businesses.

About the National Cooperative Business Association

The National Cooperative Business Association (NCBA) is the national association for cooperative businesses providing cross-sector education, support and advocacy to help start and grow co-ops across a variety of sectors, including agriculture, childcare, energy, financial service and credit unions, food distribution, healthcare, housing, retail and telecommunications. For nearly 100 years, our mission has been to develop, advance and protect cooperative businesses demonstrating that cooperatives are a better business model for advancing economic and social impact. For 50 years, we have supported cooperative development globally through our CLUSA International Program.

About the International Year of Cooperatives

2012 was named the International Year of Cooperatives by the United Nations. A yearlong celebration of the co-op business model and its positive economic impact across the globe, reminding us that it is possible to pursue both economic viability and social responsibility.

About Consumer Federation of America

Consumer Federation of America (CFA) is a non-profit association of some 280 national, state, and local pro-consumer organizations founded in 1968 to promote the consumer interest through research, education and advocacy.

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Outdated regulations deny small business co-ops access to capital needed for growth, jobs.

Washington, D.C. —Mar. 6, 2012—Senator John F. Kerry has taken a step toward strengthening the economic recovery and helping small business cooperatives by recommending that the US Small Business Administration establish clear eligibility guidelines for SBA loan programs. In a Feb. 29 letter, Kerry called on SBA Administrator Karen Mills to review current SBA policies that are outdated and effectively deny more than 3,400 small businesses from accessing capital that could enable them to expand, create jobs and strengthen the economy.  The regulations in question date back to the 1960s and are subject to broad, conflicting interpretations. 

“Small business is the engine for recovery in this economy,” said Liz Bailey, interim president and chief executive officer of the National Cooperative Business Association.  “These unclear regulations hinder that recovery because many lenders interpret the current regulations to mean that no co-op is eligible for the programs.  Small business cooperatives should have access to capital to grow and create more jobs.  But, cooperatives contribute more than jobs to their communities, creating social as well as economic benefits,” she continued.

In his letter, Kerry said, “Small cooperatives face the same challenges that other small businesses do and are in need of fair lending opportunities.”  At present, “too many lenders see the regulations as a broad denial of access for all cooperatives, even those that otherwise fit the criteria of being a small business.”

NCBA has advocated for change to the SBA eligibility guidelines for several years and supported the Cooperative Fund of New England in its successful effort to include worker cooperatives in the SBA Intermediary Lending Pilot Program.  Authorized under the Small Business Jobs Act of 2010, the ILPP provides direct loans up to $1 million to expand access to capital to small businesses and drive economic growth and job creation. In August of 2011, the Cooperative Fund of New England received a $1 million low-interest loan through the ILPP for lending to worker and producer cooperatives. 

The United Nations has designated 2012 as the International Year of Cooperatives because of the social and economic benefits cooperatives provide to communities.  Cooperatives are values-based, businesses owned and controlled by those that use the cooperative’s services.  Cooperatives are a major economic force in developed countries and a powerful business model in developing ones. Worldwide, over 1 billion people are members of cooperatives. The economic activity of the largest 300 cooperatives in the world equals the 9th largest national economy.

ABOUT NCBA
Founded in 1916, the National Cooperative Business Association is the national voice for cooperative enterprise in the United States and has a mission to develop, advance and protect cooperative business. 
NCBA provides a strong, unified voice on Capitol Hill and diligently works with lawmakers to enact legislation that supports the development and growth of cooperatives.  NCBA’s comprehensive programs help co-ops strengthen their businesses so they can better serve their members and transform the global economy. NCBA also creates connections across all sectors of the nation’s more than 29,000 cooperative businesses, including agriculture, food distribution and retailing, childcare, credit unions, purchasing, worker-owned, housing, healthcare, energy and telecommunications cooperatives. NCBA’s CLUSA International Program has helped develop cooperatives and other sustainable businesses in over 100 countries since 1953.  CLUSA currently implements 23 projects in 10 countries. In the 2012, cooperatives around the world will celebrate the International Year of Cooperatives.  Cooperative enterprises build a better world. To learn more about NCBA, please visit www.ncba.coop. To learn more about the US observance of the International Year of Cooperatives, visit www.usa2012.coop.

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Washington, D.C. —January 11, 2012—Two years after a devastating earthquake rocked Haiti, one cooperative organization is receiving support through a program funded by cooperatives around the globe. Several natural disasters, including the January 2010 earthquake, have dramatically affected Haiti’s agricultural production, which contributes 25 percent of gross domestic product in the country. The program will provide post-disaster business support to the Federation of Cocoa Cooperatives in Northern Haiti (FECCANO). Through technical and business assistance, the National Cooperative Business Association’s CLUSA International program will assist FECCANO in improving its cocoa processing capacity, strengthening its governance and management capacity and establishing relationships with similar cooperative organizations. 

In addition to contributing one quarter of the country’s GDP, agriculture accounts for 50 percent of Haiti’s overall employment. In the 1980s and ‘90s, Haiti produced significant amounts of export quality coffee and cocoa, primarily from the northern watershed regions. FECCANO’s member cooperatives grow cocoa across two major watersheds. Hillside tree production is important not only for farmer livelihoods but also for stabilizing the hillsides during the hurricane and rainy seasons. With successive disasters, the cocoa producers have suffered from loss of trees, destabilized soils, mudslides and diaspora. One of the hardest hit areas is the northern watershed where cocoa production occurs by producer cooperatives that belong to the cocoa federation FECCANO.

“Cocoa remains a high-value and high-potential crop that can make a significant contribution to the lives and livelihoods of the members of the Federation of Cocoa Cooperatives and their families,” said Amy Coughenour Betancourt, vice president of the CLUSA International program. “Especially in the International Year of Cooperatives, this program demonstrates the solidarity of the international cooperative community in rallying to provide business and technical assistance to support long-term recovery of the Federation,” she continued.

The program, funded through an agreement between the International Co-operative Alliance and NCBA, provides $298,143 to support Federation members affected by a steady decline in on-farm productivity and increasing isolation and lack of access to financial resources. This 18-month program will bring long-term benefits to the 2,500 members of the Federation and their families—an estimated total of some 10,000 people. The program is one of two funded by ICA to support the long-term recovery of cooperatives in Haiti.

“The global cooperative community began donating funds to support Haitian cooperatives immediately after the devastating 2010 earthquake,” said Charles Gould, director-general of the ICA. “Almost $600,000 was donated to the ICA’s appeal.  The ICA Board determined that supporting long-term agricultural recovery that emphasizes business and cooperative management will bring sustainable benefits to the Federation and its members. NCBA’s CLUSA International program provided an ideal vehicle to deliver half of this aid,” he continued.

The United Nations has designated 2012 as the International Year of Cooperatives because of the social and economic benefits cooperatives provide to communities. Cooperatives are values-based, businesses owned and controlled by those that use the cooperative’s services. Cooperatives are a major economic force in developed countries and a powerful business model in developing ones. Worldwide, over 1 billion people are members of cooperatives. The economic activity of the largest 300 cooperatives in the world equals the 9th largest national economy.

ABOUT NCBA

Founded in 1916, the National Cooperative Business Association is the national voice for cooperative enterprise in the United States and has a mission to develop, advance and protect cooperative business.

NCBA provides a strong, unified voice on Capitol Hill and diligently works with lawmakers to enact legislation that supports the development and growth of cooperatives. NCBA’s comprehensive programs help co-ops strengthen their businesses so they can better serve their members and transform the global economy. NCBA also creates connections across all sectors of the nation’s more than 29,000 cooperative businesses, including agriculture, food distribution and retailing, childcare, credit unions, purchasing, worker-owned, housing, healthcare, energy and telecommunications cooperatives. NCBA’s CLUSA International Program has helped develop cooperatives and other sustainable businesses in over 100 countries since 1953. CLUSA currently implements 23 projects in 10 countries. In the 2012, cooperatives around the world will celebrate the International Year of Cooperatives. Cooperative enterprises build a better world. To learn more about NCBA, please visit www.ncba.coop. To learn more about the US observance of the International Year of Cooperatives, visit www.usa2012.coop.

ABOUT ICA

The International Co-operative Alliance is the global voice for the values-based business model of the cooperative, uniting cooperatives worldwide and providing a forum for knowledge and concerted action. ICA was established by cooperatives in 1895. It has members in almost 100 countries representing one billion people worldwide. To learn more about ICA and the global observance of the International Year of Cooperatives, visit http://2012.coop/.

 

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