Applying for a Loan

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Loan Criteria:

The Kagawa Fund makes loans as part of its mission of supporting the development of the campus cooperative movement in North America. To best carry out this mission, the Fund seeks to consider both traditional lending criteria as well as social criteria in making decisions about loans to projects.

Traditional lending criteria include assessment of the financial feasibility, the capability of the group, and the collateral available to secure the loan. Nobody gains through support of an ill-conceived project; the Fund applies these criteria to ensure that it is supporting co-ops that will survive and flourish, as well as to protect loan capital for use in the future.

Social criteria include the history of the organizing group, the degree of need and number of people served by the proposed project, and the likelihood that the loan will catalyze further projects in the future. The Fund also only lends to groups which have a demonstrated commitment to serving a student constituency and which show a willingness to maintain involvement in the co-op movement.

Loan Terms:

The Kagawa Fund provides loans which balance the needs of projects with the needs of investors. In general, loans will be for 3-5 years at interest rates close to those found in the prevailing market. However, the Fund will work with borrowers to determine loan terms which meet the needs of their project.


Loans are generally only available to projects which will be able to provide sufficient collateral, in the form of a conventional real estate mortgage or deed of trust.