Mid-America Cooperative Council

Cooperatives Eligible to Receive COVID-19 Assistance

 

Cooperative businesses experiencing financial issues due to the COVID-19 pandemic are eligible to receive assistance through two major programs of the U.S. Small Business Administration, the Payroll Protection Program and the Economic Injury Disaster Loan program.

Payroll Protection Program

The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Payroll Protection Program (PPP), providing $349 billion for small business loans for qualified payroll costs, rent, utilities, and interest on mortgages and other debt obligations. PPP loan amounts are forgivable as long as:

  • Loan proceeds are used to cover payroll costs and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
  • Employee and compensation levels are maintained.

The National Council of Farmer Cooperatives (NCFC) and National Cooperative Business Association (NCBA CLUSA) have shared that cooperative businesses in agriculture, purchasing, consumer food, and worker cooperatives that meet the size criteria, generally with fewer than 500 employees, are eligible for this program based on the interim rule and Department guidance.

Applicants can apply to the PPP through eligible Small Business Administration lenders beginning Friday, April 3, 2020. Applicants will be required to submit an application and payroll documentation. To find an eligible SBA lending institution, tap or click here.

For a factsheet about the PPP, including information about loan terms, interest rates, and repayment periods, tap or click here.

Economic Injury Disaster Loans

The Small Business Administration’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing due to COVID-19.

In response to the COVID-19 pandemic, small businesses in all 50 states and Washington, D.C. are eligible to apply for an EIDL advance of up to $10,000 for businesses that are currently experiencing a temporary loss of revenue. This loan advance does not have to be repaid and will be made available within three days of a successful application, even if the loan is not approved or if it is approved and not taken.

Cooperative businesses with fewer than 500 employees are eligible for the EIDL program.

To learn more about the EIDL program, including information about interest rates, loan terms, use of loan funds, and the application process tap or click here. Applicants to the EIDL program can apply directly to the SBA.

To learn more about applying to the EIDL program as a cooperative business, watch this webinar, “Demystifying SBA’s Economic Injury Disaster Loans,” hosted by the National Cooperative Business Association (NCBA CLUSA).

Cooperate with the CFAES Center for Cooperatives

  • Visit us online at go.osu.edu/cooperatives
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Learn more about the Mid America Cooperative Council

Cooperative Leadership Forum Offers a Valuable Learning Opportunity

The Mid America Cooperative Council (MACC), an organization representing over 100 cooperatives in Ohio, Indiana, Illinois, and Michigan, is offering a unique leadership training for co-op employees, board members, and other prospective leaders. The sessions on February 21-22 and March 6-7 in Oxford, Ohio will include tours of successful cooperatives in various sectors, sessions on leadership and management, and talks with cooperative leaders from across Ohio, among other activities.

MACC Executive Director, Rod Kelsay, talks with forum participants about how to develop their personal leadership skills.

In 2016, staff members of the OSU South Centers had the opportunity to participate in the forum, which included tours of Butler Rural Electric Cooperative, Inc. and CHACO Credit Union as well as visits from representatives of Miami University Credit Union, Dairy Farmers of America, and COBA/Select Sires. The various speakers shared how their co-ops benefit members, how they are governed, and the services they provide to members. Each highlighted their “cooperative difference,” including their prioritization of members’ needs, education efforts, and concern for community. OSU South Centers’ Kimberly Roush, explained the inspiration she gathered from visits to local co-ops. “I noticed an interesting result of the cooperative environment during the leadership forum—the overall culture of the cooperative employees who spoke with us.  The staff explained specific details about the reason for and the function of their cooperatives. Then they shared something more—talking about member activities and interaction with the community.  It was exciting to learn how the cooperative principles permeate the local culture.”    

Not only did staff learn a great deal from various guest speakers, the forum was an opportunity to network with and learn from other participants who worked across various sectors like credit unions and agricultural marketing and supply co-ops.

To learn more about the 2018 Cooperative Leadership Forum, visit http://editor.des08.com/macc/Brochure_CLF_2018.pdf. Contact MACC with any questions at (317)-726-6910 or knowledge@macc.coop.

The Ohio State University CFAES launches a new integrated Center for Cooperatives

Center for Cooperatives reception at the OSU 4H Center in Columbus, Ohio Wednesday October 18th, 2017. (Christina Paolucci, photographer)

Friends of Ohio’s cooperatives joined the College of Food, Agricultural, and Environmental Sciences and OSU Extension to celebrate the newly established CFAES Center for Cooperatives at the Nationwide & Ohio Farm Bureau 4-H Center on October 18th, 2017.

The celebration commemorated the 2017 National Cooperative Month of October. The event also coincided with Ohio Cooperative Week designated by Governor John Kasich as October 15-21, 2017 in a Resolution presented to Mid-America Cooperative Council Executive Director Rod Kelsay at the event.

Dr. Graham Cochran, CFAES Senior Administrative Officer, welcomed cooperative leaders from United Producers, Select Sires, Nationwide, the Ohio Farm Bureau, and others to the event, and shared the college’s commitment to organizational development and workforce preparation. Associate Dean and Director of OSU Extension Dr. Roger Rennekamp highlighted the importance of cooperatives and how the Center will be part of the overall network of OSU Extension programming to reach stakeholders in all 88 counties of Ohio. Dr. Tom Worley, Director of the new Center, announced the University has been awarded a Rural Cooperative Development Grant totaling approximately $200,0000 to improve rural areas of Ohio and West Virginia through the development of cooperatives and other mutually-owned businesses. Debbie Rausch, from the Ohio office of USDA Rural Development spoke to the group, highlighting the College’s 18 years of USDA cooperative development efforts.

Along with Worley, Dr. Ani Katchova is leading research programs for the Center and Hannah Scott is serving as leader of Extension and outreach activities. Programming for the Center will occur within and link all major mission areas of CFAES, including teaching, research and Extension. This integration is expected to extend knowledge to emerging and established agricultural cooperatives and support rural economic development. Furthermore, the Center will provide students and agricultural professionals with more interdisciplinary training and research opportunities.

“The CFAES Center for Cooperatives is expected to be comprehensive and bring together all three mission areas of the College – teaching, research, and Extension. We are very pleased to be well positioned to serve the wider cooperatives community in Ohio through the combined faculty and staff resources of the Center,” OSU South Centers Director Tom Worley said.

The Center maintains staff based in Piketon, Ohio and also has faculty presence on the Columbus campus. It will integrate the College’s current activities and operations that support cooperative business development, engage directly with long-established cooperatives, and provide cooperative education both in the classroom and via Extension and outreach programs.