Heart is Home Cooperative Care was founded in 2015 with the best of intentions. A local nonprofit started the cooperative with the purpose to offer caregivers in New Mexico better wages, training and benefits. It took more than three years before the co-op had any clients, and by 2024 there were only seven. Wages actually lagged local market conditions, making caregiver recruitment difficult. Revenues had also been declining steadily since their first full year of operations, as a lack of outreach, market presence, and administrative capacity made it difficult to find new clients. The founding nonprofit had set up sound financial systems, and a dedicated group of professional outsiders served on the board (along with the co-op’s two members). But as both a business and as a member-controlled cooperative, Heart is Home was stalled. The parties were still committed to building a sound, worker-owned business, but they needed help getting started.

An influx of new capital and expertise from the FJWO helped turn the situation around. The first thing our TA providers did, even before the loan was made, was coach the office staff on marketing and outreach tactics, and how to develop systems for monitoring progress. Hours billed increased by 91% between January and July of 2024. With funds from a $50,000 line of credit, the cooperative was able to make immediate improvements to wages and direct essential staff time to pressing issues of hiring more caregivers and securing more clients. FJWO also supported them as they turned a critical eye on bylaws that were more appropriate for a nonprofit organization than a worker-owned cooperative. As a result, the co-op rewrote their bylaws, successfully recruited three additional members, and with a heartfelt “thanks for the help, but we’ve got it from here” replaced outside oversight with a board composed of a majority of worker-owners.  Financial performance is still breakeven, but the co-op is showing improvements to key metrics, is motivated to grow, and is on a clear path forward.  

While lines of credit like the one we gave Heart is Home is not amongst our most profitable financial products, they clearly can be one of the most impactful. Our combination of flexible capital and expertise in democratic organizations helped this well-intended effort move from intention to actual reality, providing better pay and an empowered work place for New Mexico’s home care workers.