I've spent this morning working on getting in touch with everyone who has expressed interest in becoming a community lender for Greenlight Bookstore. (If you're interested and I've somehow missed you, email me here or here and I'll happily send you the documents and details.) Here's what I told them:
After conferring with our lawyer and accountant, Rebecca and I have finalized the new terms of the loan and promissory note for community lenders. Basically, we're giving lenders the option of choosing their own interest rate, between 2.5% (just above the minimum required by the IRS) and 4% (just above the prime rate). The loans of $1000 or more will be paid back by Greenlight Bookstore with quarterly payments over five years, beginning one year from the opening date of the bookstore (this gives us a grace period during the traditionally difficult first year of business). Interest begins to accrue on June 1, 2009, and will be compounded annually.
In addition to getting your loan back with interest, community lenders get the employee discount of 30% off all purchases at Greenlight until the loan is paid in full. And they'll get special "community lender privileges" like advance notice of author appearances, sales and other store functions throughout the life of the bookstore.
Additionally, lenders at the $10K+ level will be included in meetings (probably quarterly) of the bookstore's Advisory Council, to get in-depth updates on the store's progress. We're also working out details of an optional "lender internship" for high-level investors, in which they'd have the chance to experience the various parts of the store's operations, such as buying, receiving, hosting events, etc.
Thanks again to all our community lenders. We're so delighted and honored by your support, and we think it will prove to be extremely worthwhile.
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I am so incredibly impressed with how organized and savvy and brilliant you both are. With your vision, your passion and your logical and thoughtful blueprint for building an important community center, there's no way that this business cannot succeed.
ReplyDeleteI just wish I could be a Community Lender. Instead, please accept my best wishes and I will happily pay full price when you open.
Can I be a community lender from Albany? I'm really impressed and want to join in.
ReplyDeleteGreat idea! I had some ideas brewing about how to get my community involved like this, and it sounds like this is one of the ways to go (if you don't mind my mimicking you!). Good luck!
ReplyDeleteThanks so much for your comments and enthusiasm!
ReplyDeleteAnd Margaret, of course you can be a community lender! Some members of our community are many thousands of miles away. Just email us at info@greenlightbookstore.com and we'll send you the details.
Thanks all for your support!