Shared Ownership
Shared Ownership
At MCCD, we reject the myth that economic individualism is the only path to community thriving.
We know that, for generations, BIPOC and other marginalized communities have strategically bypassed the exploitation and volatility of the traditional housing and labor markets to create shared ownership models that prioritize collective prosperity over individual gain.
Building on this rich legacy, MCCD envisions robust networks of shared ownership enterprises that are cooperating with one another to foster the civic, cultural and economic agency for local community members to build, own and protect the places they live and labor. As a field leader in Minnesota, we win policies, deploy resources and provide expertise to make shared ownership models a viable and accessible avenue to community wealth building.
What is Shared Ownership?
Shared ownership models encompass various approaches, such as:
- Worker cooperatives
- Real estate investment cooperatives and other cooperative types including purchasing, producer and processing, marketing, consumer, and 100% employee-owned models
- Commercial land trusts
Why Shared Ownership?
For too long, traditional economic development practices have inflicted economic, social, and political harm on BIPOC and low-wealth communities. Rather than approaches that subsidize corporations and prioritize scale, we believe in a community wealth building framework that centers racial equity and cultural practices—and returns power back to the people.
We see shared ownership as an essential tool for BIPOC and low-wealth people to re/claim rightful control of the assets and spaces that make up their communities to preserve their cultures and safeguard their futures. We recognize that shared ownership not only builds financial stability for workers and families but fosters social connection and civic participation that ensures our communities reflect the values and desires of local residents, not outside interests.
For years, MCCD has supported the self-determination and aspirations of BIPOC entrepreneurs who make up more than 70% of our small business support clients. But we know that’s not the only model to advance racial and economic equity.
Cooperative ownership can be a significant catalyst. For instance, the median wealth of Black households would increase 400% — from $24,000 to $106,000 — if 30% of every US business were owned by its workers (Harvard Business School, 2021). And these models can be particularly impactful in sectors where BIPOC and women workers are overrepresented. For instance, in the home care sector, agencies that are cooperatively owned pay nearly $2 more per hour on average, and retain 82% of their workers compared to just 38% (IGA Group).
How we support Shared Ownership
To make them philosophically and structurally different, shared ownership models have unique governance systems, financial management protocols, and legal, tax, and regulatory requirements. As technical assistance providers, we equip entrepreneurs the knowledge and resources to make strategic decisions about individual or shared ownership models.
At MCCD, our advisors and extensive network of consultants provide free, confidential business counseling and technical assistance including:
- Start-up and conversion support
- Governance education and training
- Business and strategic planning
- Budgeting, financial planning, and analysis
- Risk management training
- Tax, licensing, and accounting advising, including referrals to professional service providers
- Direct lending and financing support
- Marketing and communications planning
In 2023, as part of our sector-based strategy, we delivered cooperative business advising services to six worker cooperatives. Notably, in one of the home care cooperatives, the impact of shared ownership is already surfacing, with the average wage for direct care workers increasing by $2.80 per hour.
MCCD provides flexible, low-interest capital for startup, conversion, and growth financing for Minnesota businesses that are at least 51% owned by people who are Black, Indigenous, People of Color, immigrants, low-income, women, veterans, people with disabilities, or those serving underinvested geographic areas.
MCCD offers 4% loans with flexible terms to support the growth of cooperatives, other jointly owned and democratically controlled businesses, and real estate endeavors including commercial land trusts and real estate investment cooperatives.*
Loans range from $50,000 to $300,000.
Loans up to $500,000 will be considered on a case-by-case basis.
In partnership with
As advocates, we win policies that create pathways for more businesses and community members to envision shared ownership models. For instance, in 2023 we worked with partners to secure a $3 million Community Wealth Building Program at the Minnesota Department of Employment and Economic Development to allocate state funds specifically for shared ownership business enterprises.
MCCD is a proud co-founder of the Shared Ownership Collaborative St. Paul — an intentional collaboration of BIPOC-led organizations energized by a spirit of possibility and sustained by our unwavering conviction that our communities must have the power, resources and support to design, own and make decisions about their land, labor and housing. The collaborative currently includes MCCD, Model Cities, Rondo Community Land Trust, and West Side Community Organization.