June 21 - World Localization Day
V.2, N.50
Localization is a global phenomenon growing stronger every day. And it’s the foundation of everything we do here at The Main Street Journal. About one in ten of our readers is not American, and many of the stories we bring you offer new international examples of local investment models, cutting-edge business designs, and supportive policies. In last week’s MSJ Extra!, for instance, we interviewed Marc Almon on the strengths and challenges of Nova Scotia’s neighborhood-based pension funds. If the United States had as many of these funds per capita, we would have nearly 21,000 operating in the country.
No one has done more to shine a spotlight on the global localization movement—and to energize it—than my dear friend, Helena Norberg-Hodge. Every year, on June 21, she organizes World Localization Day to remind us that even though we might feel like outliers in our own communities, there are hundreds of thousands of outliers around the planet who are localizing their economies in unique ways. I encourage you to tune in tomorrow, June 21, to Helena’s new film, Closer to Home. Here’s a brief description:
We live in a time of multiple crises, from climate chaos to skyrocketing costs of living. It can seem overwhelming—until we realize that we have the power to change things. Closer to Home brings together an extraordinary array of thinkers, writers, and activists from every continent to make a simple but revolutionary argument: by reducing the scale of the economy, we can not only stop the rush toward social and ecological breakdown but restore damaged ecosystems and increase our own personal well-being. It’s a message of hope that the world cannot afford to ignore.
Helena’s organization, Local Futures, will screen the film in three time zones, followed by a discussion group made up of different voices from the movie—one of which I’ll help lead.
Other stories you’ll find in this issue:
WaterBottle is a new worker-owned co-op in Baltimore, helping its members rehab and buy abandoned properties. It currently owns 22 properties—in a city with 13,000 empty homes.
Homium is a new company based in Colorado that helps people struggling to become homeowners share their equity with outside investors. The concept can reduce the downpayment burden upfront and also allow equity to be converted into cash without a second mortgage.
NPR’s Marketplace reports that young people are increasingly asking—and getting—their parents to invest in their first homes.
One reason many Americans feel awful about the economy, according to an article in The American Prospect, is more debt. Total credit card debt now exceeds $1 trillion, and the average cardholder pays $250 more in interest per year.
Last year, Patagonia’s founder put his $3 billion in stock shares into a nonprofit, effectively turning the company into a public engine for sustainability. Dozens of other companies are now pioneering interesting new approaches to bring stakeholders onto their boards and into their governance structure.
Finally, Colorful Capital just released a report on how investors can profit (and are profiting) from investing in LGBTQIA+ startups.
As we announced previously, we now welcome sponsors for each issue of The Main Street Journal as a way of paying our bills. Let us know what you think of this idea. And if you want to sponsor an issue yourself, please reach out!
As always, if you want more news, please subscribe to the MSJ Extra! through this link.
~ Michael Shuman, Publisher
NEWS
Worker-Owned Co-op Gives Baltimore’s Vacant Homes a Second Chance, The Baltimore Banner (June 4)
Boosting Homeownership With Shared-Appreciation Notes, ImpactAlpha (June 6)
“Mom, Dad, Will You Cosign My Mortgage, Please?” Marketplace (June 10)
The Big Banks Behind the Rising Cost of Credit, The American Prospect (June 11)
Prototyping the Deep Enterprise Redesign, The Pioneers Post (June 11)
How Investment Can Address the Systemic Risk of LGBTQIA+ Inequity, Colorful Capital (May 29)
Thank you to this issue’s sponsor:
Jump to a Section:
✔️ News from NC3
✔️ Partner News & Voices
✔️ Events
✔️ Jobs Board
WHAT YOU MISSED IN LAST WEEK’S MSJ EXTRA!
Marc Almon is a well-known filmmaker in Nova Scotia, Canada, and the founder of a Community Interest Company dedicated to placemaking called Culture Link CIC. He also has been an articulate advocate for the steady improvement of the province’s local investment ecosystem.
MS: Marc, thanks for talking with us. When people ask me about great examples of local investment innovation outside the United States, I usually begin by talking about CEDIFs in Nova Scotia, which are effectively community-controlled pension funds. Tell us about the origin of CEDIFs. Why and when were they created?
MA: In the 19th century, Nova Scotia was a place with considerable capital. It had extensive sea-going trading networks undergirding the local economy. The Bank of Nova Scotia and Royal Bank of Canada were founded in Nova Scotia during this heyday, as was the Cunard Line. But in the 20th century, the local economy struggled, particularly after a ship exploded in the Halifax harbor in 1917 and devastated the city’s industrial areas. Central Canadian firms bought up local firms, and there was little opportunity to invest locally. Risk capital for Nova Scotian firms became very hard to come by.
That’s why the Nova Scotia government introduced the Equity Tax Credit in 1993 and Community Economic Development Investment Funds (CEDIF) in 1999. These were pioneering pieces of legislation. Local investors could receive substantial tax credits for investing in local businesses. Essentially, investors receive 35% of their money back in the first year, 20% in the fifth year, and 10% in year ten, provided they keep their investment in the organization for 15 years (quite a long horizon). If a person invests in a CEDIF via a registered retirement savings account, it provides further tax savings. In terms of patient capital, it’s a remarkable system that can provide substantial risk mitigation for investors investing in local ventures.
Twenty-five years after the CEDIF program was introduced, we can say the program has resulted in some remarkable outcomes. A study by Dr. George Karaphillis showed that by 2019, the Nova Scotia government spent $700,000 in forgone taxes to foster $2 million of investment in 116 local businesses. Those businesses contributed $118 million annually in gross domestic product (GDP), generated 1,200 jobs, $52 million in annual wages, and $25 million in taxes. That means for every $1,000 invested by the Nova Scotia government through the CEDIF program, the program resulted in the creation or retention of 1.75 jobs—or $575 per job! Nothing else in the universe of economic development compares to these metrics.
SPONSOR CORNER
The National Coalition for Community Capital (NC3) is dedicated to educating, advocating, and activating community capital—and serves as MSJ's fiscal sponsor. Thank you for being a part of a growing movement! Be sure to reach out to us for support integrating local investing in your work: info@nc3now.org.
NC3 UPDATES AND ANNOUNCEMENTS
Announcing NC3's Technical Assistance Directory has a new name: Practitioner's Directory. This list has informed folks of the organizations and individuals who offer services that support further integration of community capital around the country. NC3 hosted our first Practitioner's Gathering in April and a second this past week. Find community capital practitioners to move your work forward here! Are you an expert? Consider joining us at this link (scroll past the table).
Crowdfund Better CEO and Founder Kathleen Minogue joined NC3 Board Chair Chris Miller for a presentation at the IEDC Economic Future Forum in Spokane, Washington, this week. The title of their presentation was 'Democratizing Community Development.' During the presentation, Kathleen and Chris made the case for community investing, discussed several models, and led the attendees through scenarios voted on by the participants.
In addition to their presentation, Kathleen and Chris had a number of in-depth conversations with folks who'd arranged for a meet-up ahead of time or some who struck up conversations and were intrigued by the introduction of our work and its benefits. In those conversations and the formal presentation, a number of real-world examples were presented—including the pending launch of a Diversified Community Investment Fund (DCIF) by Local Return in Rhode Island—and some telling data, including the significantly lower rate of failures for community-funded businesses versus those funded by traditional capital sources. The presentation also included this quote from one of the NC3 founding board members, Janice Shade, now CEO and Founder of Capital Innovation Lab on Community Investment Funds:
"Community Investment Funds fill a critical gap in a region's capital landscape. Guided by their investors' relationship to and lived experience within a community, CIF's go where angels (and banks) fear to tread; because they see opportunity and need where traditional capital providers see only risk. By providing that missing source of ‘possibility capital,’ CIFs facilitate local economic resilience and prosperity for all."
PARTNER NEWS & VOICES
Empowering Underserved Entrepreneurs with Kiva, Superpowers for Good (June 13)
Pride in Transforming Communities, PathLight Law (June 6)
The Fall and Potential Rise of a Black Business District, Institute for Local Self-Reliance (June 6)
Lessons from Crescent City Community Land Trust, Shelterforce (June 4)
The Power of Moving Assets Into the Commons, Solidarity Hall (June 4)
NEW INVESTMENT OPPORTUNITIES
Our complete list of recently posted investment opportunities has moved to MSJ Extra! As a teaser, here is an offering from our list. (Please note that our listing of these opportunities is not an endorsement, and remember that all investments are risky, so click on the hyperlinks and read all the details carefully before investing.)
Obodo Serendipity Books (Stratford, CT) - Honeycomb Credit: A small, independent bookstore offering diverse books rooted in social and emotional development (Choose Indie Pride: LGBTQ+ owned, Minority-owned).
NOTABLE NEW RESOURCES
Next Steps for the Alternative Ownership Movement, Shareable (June 4)
Building Black Wealth Through Employee Ownership, Project Equity (June 3)
FEATURED EVENT
Closer to Home Film Premier: Followed by a live webinar with voices of hope from the film, including Michael Shuman - Virtual Event: June 21, 7 pm ET
MORE EVENTS
World Localization Day: An annual celebration of the worldwide localization movement convened by Local Futures - Worldwide: June 21
How Small Businesses Can Raise Capital from the Crowd - Virtual Event: July 11 at 1 pm ET
Next Economy MBA Q&A Session - Virtual Event: July 23 at 3 pm ET
The Evolving Landscape of Employee Ownership Investing - Virtual Event: June 24 at 1 pm ET
Community Capital Live: Lisa Nutter of Community Impact Investments - Virtual Event: July 17, at 2 pm ET
ICYMI
Artisans Cooperative: Crafting a Member-Owned Online Marketplace, American Independent Business Alliance
Women in Impact Investing, Mission Driven Finance
JOBS BOARD
Common Future: Controller, Fund Development Manager, and Impact Investments Manager
Mission Driven Finance: Accountant, Compliance Senior Manager, and Fund Management & Client Services
Project Equity: Head of Finance and Administration and Manager of the Project Management Office
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About The Main Street Journal
The Main Street Journal aims to catalyze the movement of $50 trillion from Wall Street to Main Street to facilitate economic development and economic justice. It’s sponsored by the National Coalition for Community Capital, with grants from the Heron Foundation, Wallace Global Foundation, and the Bondi Foundation. We welcome feedback about everything, from our design to content. Also, we welcome suggestions of other groups to involve as partners and additional information to include. Please send ideas to Jen Risley at jen@main-street-journal.com.
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Jessica Landman - Strategic Advisor
PARTNERS
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