Worker Ownership in the Care Economy

In an economy that frequently undervalues care work, the Fund for Jobs Worth Owning (FJWO) is doing something unique: investing in home care and child care cooperatives. Caregiving remains one of the most essential yet underinvested sectors in our economy. The industry is dominated by bad jobs – wages are low, benefits are meager, and full-time jobs are out of reach. Nationally, home care workers earn just $16.93/hour on average and 46% rely on one or more forms of public assistance. For child care workers, the situation is even worse, with a median wage of just $14.60/hour and an estimated 53% enrolled in public assistance. The effects of these conditions fall on a workforce primarily made up of women and people of color. 

Amid a sector in urgent need of reform, FJWO is channeling capital into worker-owned caregiving cooperatives, offering a path to economic mobility, dignity, and autonomy for those who provide care. 

Quick Facts:

Deploying Integrated Capital

Integrated Capital is a vital tool for building a new economy, one that shifts the priority from serving capital to serving communities. Rather than centering investor returns, integrated capital centers the needs of entrepreneurs tackling society’s most entrenched challenges. 

FJWO practices this philosophy by offering a suite of flexible, mission-aligned financial tools designed to meet the real-world needs of caregiving cooperatives and businesses transitioning into worker ownership. These tools include mezzanine financing, deferred loans, and lines of credit. 

In cooperative conversions, mezzanine financing (flexible subordinated debt) is often the missing ingredient to unlocking the senior debt required to complete the deal. Deferred loans give borrowers the runway to reinvest in growth before prioritizing repayment. And while lines of credit may not make headlines, they are essential in easing cash flow and sustaining operations. Few CDFIs offer this critical product but FJWO is happy to do so, recognizing that cash flow support is often the difference between success and failure.

FJWO also offers borrowers comprehensive technical assistance, another form of integrated capital, providing in-depth training, coaching, and support through its relationship with ICA Group, the oldest national organization dedicated to the development of worker cooperatives.

Importantly, FJWO’s financial products are designed with equity in mind. They seldom require personal guarantees or impose rigid down payment or equity requirements. This makes their capital accessible to businesses with broad-based ownership and allows low-to-moderate income individuals to launch enterprises without needing the benefit of intergenerational wealth. 

Demonstrated Impact

In its first five years, FJWO’s has preserved nearly 300 jobs, created 100 new worker-owners, and transferred nearly $13M in business assets into the hands of workers. Half of its lending portfolio loans supports the caregiving sector, where each investment not only supports economic justice, but also sustains access to critical community services like home care, child care, and mental health support. 

Cooperative Care is a successful turnaround project, made possible by the combination of flexibility of financial products and development services that are the FJWO trademark. This 40-member worker cooperative in rural Wisconsin faced bankruptcy in early 2020 when their local bank unexpectedly canceled their line of credit. FJWO stepped in with flexible financing and helped the cooperative board craft and carry out a turnaround plan. The co-op went from a $50,000 loss in 2021 to a $50,000 profit in 2022 and 2023, paying thousands of dollars in bonuses to caregivers and raising base wages. In 2024, the cooperative started offering health insurance to full-time caregivers and office staff, successfully achieving a goal they have had for a decade. 

Beyond the numbers, FJWO is helping build confidence and capacity among worker-owners. Their team is deeply invested in building trust and offering hands-on support. After a budgeting session, one home care cooperative wrote: 

“I haven’t stopped smiling! This (training session) is a classic example of caregivers evolving into savvy business owners with help from people like you!” 

Looking ahead, FJWO’s strategy is not just to fund individual cooperatives but to cultivate networks, ecosystems of cooperatives that can coordinate business operations, engage in peer learning, participate in group purchasing, amplify public outreach, and advocate for policies that strengthen the entire sector. This type of ecosystem building is exactly what makes the Fund for Job Worth Owning an amazing addition to our Transformative 25 list of funds!

To learn more about the Fund for Jobs Worth Owning, reach out to Jonathan Ward, Director of Lending (jonathan@jobsworthowning.org) and Chris Carley, Loan and Portfolio Manager (chris@jobsworthowning.org).