Capital for Cooperatives Act

The Capital for Cooperatives Act (S. 1736) aims to make it easier for cooperative businesses to access federal funding through the Small Business Administration (SBA). Currently, many cooperatives struggle to secure SBA loans because the agency often requires individual members to personally guarantee the debt, which is difficult for businesses owned by large groups of workers or consumers. This bill would remove that personal guarantee requirement and direct the SBA to work with other federal agencies to develop strategies for increasing the number of cooperatives nationwide. For citizens, this could lead to more locally owned businesses, such as grocery cooperatives or worker-owned manufacturing shops, by providing them with the same financial tools available to traditional small businesses.