True, but small businesses fail all the time for all kinds of reasons. Lack of core members is like the co-op equivalent of the trope where the original owner of a small business sells it to some idiot who makes awful decisions and it all goes down the tubes. It doesn’t really explain why for every 100+ traditional businesses that are started, only like 1 co-op is started (numbers made up, obviously, but it feels that way).
The loan part makes a lot of sense, much easier for a bank to deal with a single person rather than a whole cooperative. Funnily enough, the Cheeseboard and Arizmendi were the two co-ops I was thinking of when I made this post. I was just musing about how in the Bay Area practically every small business has all the trappings of progressive politics (the signs, inclusivity, supporting various causes) but so few actually put their money where there mouth is and organize into co-ops.
You missed that crucial first step of mashing ESC at least 3 times.