For financial institutions looking to create deep and lasting impact, worker cooperatives are a powerful tool for economic and community development. They reduce inequality by allowing a greater segment of the population to build assets through business ownership. They combat poverty by providing access to employment for marginalized populations. And they strengthen local economies by rooting businesses in their communities.

The legal and financial framework described here came out of three and half years of collaboration with attorney Bart Deamer, a partner at the Silicon Valley office of Bingham McCutchen LLP. Key concepts and terms used in our system are highlighted in bold italics. Those who are interested can use the footnotes to learn more about the technical details of implementation and find the corresponding provisions in the legal documents.