Worker-Owned Detroit
Receive fair market value for your life’s work
Small business owners in the Detroit metro area who have built successful businesses and are ready to retire or reduce their role, can explore an exit that leaves a lasting legacy.
The Worker-Owned Detroit financing program provides business owners with fair market value for their business to convert to a worker-owned cooperative structure which transitions the business to their long-standing and future loyal employees.
We provide non-extractive financing and technical assistance support to ensure equitable and wealth building jobs for years to come.
Program Features
Fair Market Value
We take a look at the businesses past financials and operations to come to a fair market price. Once a sale price is agreed upon, business owners receive half of the business sale upfront, and the remainder is paid over time from the businesses future earnings. Owners may chose to remain on as a co-owner or exit completely from the business.
Non-extractive Financing
Non-extractive financing means that worker-owners are not personally liable for the loan, no credit scores or personal guarantees needed.
Risk is mitigated through rigorous due diligence supported by rigorous technical assistance providers.
Built-in Ongoing Support
DCWF works with worker-owners for the duration of the lending timeline to ensure proper transition into worker-ownership.
Together the DCWF team and business will identify a leadership transition plan to implement over the loan repayment period.
Proven Success
Detroit Community Wealth Fund is a proud member of the Seed Commons, a national financial cooperative that has invested over $16M in worker-owned cooperatives, and is the leader in successfully financing ownership transitions with a 99% repayment rate to date.
Worker Owned Business Characteristics
Shared Ownership - ownership and operational responsibility is shared by people who work there.
Democratic Control - participation in decision making through one share per worker. Workers elect a board, typically comprised of workers, to govern the business.
Member Benefit - cooperative businesses operate for the benefit of their members. Profits of the business are redistributed to the workers providing a “patronage”. Beyond making money, the needs of the workers, community and environment are considered to create a more equitable system.
Succession Plan & Create Opportunities for Growth
Most small business owners do not have a formal succession plan in place.
Selling to workers retains local talent, preserves community assets, and protects jobs.
Growing Economic Inequality
Worker ownership enables an equitable transfer of wealth to valuable employees.
Most business put on the market do not sell.
Obtain fair market value for your business while maintaining continuity for customers and employees.