The Family Multi-Purpose Co-operative, located in Calgary, is an innovative saving and lending co-operative.  They have a program called “forced savings” where members are required to contribute a monthly amount to the co-operative and is treated as savings. This is a requirement to be a member in good standing. 

 When the COVID pandemic occurred, the Co-operative knew that its members would be impacted financially, and some members might have difficulties making their monthly savings contributions. They responded by following up with members who provided post-dated cheques for the monthly contribution to see if they wanted the cheques deposited or not and were more lenient regarding the monthly contribution requirements.  Knowing the importance of having cash on hand, the co-operative also set up an emergency loan program of $500 for its members.   

“We received emergency loan requests at all hours of the day, and I do mean ALL hours,” said Joel Orellano, Founder and Chairman. “It was our pleasure to accommodate these requests because we understood the circumstances as to why the members would request these loans and it is usually when in dire need. I’m proud to report we were usually able to release the money within one day of the request through e-transfer.” 

The emergency loan program has some unique features not typically found in traditional savings and lending institutions.  

“We do not require any signed agreements or collateral for our loans as our co-op is built on trust,” said Orellano.  “In the 10 years we have been around, we have had zero per cent delinquency.”   

Members took full advantage of the emergency loans to pay for their daily needs while waiting for the government support programs.  

“Our members really appreciated the co-op being there for their immediate needs,” said Orellano. “After four months of experiencing the struggles and hardship of the COVID-19 crisis, we learned and internalized the value of the forced savings program. And there is still zero delinquency.” 

For more information on the Family Multi-Purpose Co-operative, contact Joel Orellano at 403-708-1587.