Costco is offering $50 million in loans for the first time to help its employees build new business.
Costco has secured about $60 billion in capital from investors in recent years, according to a report in The Wall Street Journal.
The company recently raised $8.8 billion from the private equity firm Kohlberg Kravis Roberts.
The first round of the loans, expected to be repaid in six to 12 months, will cover the first $25 million for the company to get a new business up and running, according the WSJ.
Costa Costa is also offering a $10 million credit for each of its 600 or so employees.
It’s the company’s first foray into lending, and it has about $10 billion in cash.
Costas’ decision to take on loans from investors has sparked concern among some consumers who have voiced concerns about the company.
Costo’s new lending program comes amid an overall tightening of credit, according a report by Bankrate.com.
A number of companies have said they’re taking on large amounts of debt, while other businesses have been struggling to meet financial targets.
The company also has seen its stock price plunge as the recession continued.
The stock dropped 8% to $46.80 on Thursday.