Group to fund Co-op Action

RADICAL changes to the way
Co-operative Action operates and is funded have been announced in the wake of a strategic review undertaken the body&#039s Council.
Co-op Action, which was launched in response to recommendations made by the 2001 Co-operative Commission, will now be funded solely by the Co-operative Group after most of the original member societies said they preferred to develop regional development strategies rather than support the national effort.
A statement released on behalf of Co-operative Action said of the &#163 3.5 million capital gathered by the fund, &#163 3m was from the Group.
Following the review, Co-operative Action has launched a refocused approach to co-operative development that it predicts will have a significant and sustainable impact on the sector.
Changes to the way Co-operative Action, and its recently topped-up &#163 1m development loan fund, will operate were revealed by Stephen Youd-Thomas, Head of Social Goals Strategy.
He told the News: "Co-operative Action has been a considerable success, the experience that retail co-ops have gained over the last three years now allows us to build on that success and develop a new and more sustainable package of benefits that will have a significant impact."
He added the future of grant aid is still under review, but the &#163 1m loan fund – recently topped up with a &#163 250,000 injection – will continue to give co-ops unrivalled opportunities to raise business finance.
The revolving fund managed by ICOF is now the most adventurous in the UK, says Mr Youd-Thomas, and offers high-risk loans of up to &#163 75,000 and deferred interest-only capital repayment terms.
Co-operative Action says the trend of former member societies such as United, Midlands Co-op and Oxford, Swindon & Gloucester using the experience to develop their own regional community investment and development strategies could be expanded through the proposed development of Co-operative UK&#039s Innovation and Development Fund which would offer flexible opportunities.
"The review felt the Innovation and Development Fund&#039s close relationship with the New Ventures Panel, together with the improved Co-operative Action structure and the &#163 1m loan fund, presents a combination that is in line with the Co-op Commission&#039s original recommendation and builds on our experience," said Mr Youd Thomas.
Since Co-op Action was launched, 69 co-operative projects have been supported with grants totalling &#163 2.1m and loans worth &#163 757,000 – making an average of more than &#163 41,400 per applicant.