Chicago goes local to reimagine economic development
V.2, N.08
The field of urban economic development has been broken for more than a generation as most cities waste tens of billions of dollars each year to “attract and retain” business. The focus is exclusively on big, glitzy global businesses like Amazon or Tesla. Meanwhile, the larger universe of local businesses – which generate far more jobs, income, and other economic development benefits per sales dollar – is largely neglected. Our lead story shows how one major U.S. city is beginning to rethink its priorities.
Chicago has just announced a $15 million program to help low-income residents build wealth by investing in local businesses like worker-owned cooperatives, community-owned commercial real estate projects, and affordable housing through community land trusts and limited-equity housing cooperatives. But don’t cheer too loudly: Chicago and Illinois are still wasting hundreds of millions on ridiculous corporate attractions. But it’s a step in the right direction and worth continued investment of time and money.
Our second piece focuses on the potential role Brooklyn hospitals can make in supporting local businesses. A new report estimates that they have more than $2 billion of annual spending power that can support community wealth-building.
Our third piece shows how one creative nonprofit, Coastal Enterprises Inc. in Maine, used its federally designated “community development financial institutions” (CDFIs) to bring 40 solar energy projects to low-income communities. The Biden-Harris Administration has just announced over $8 billion additional dollars to support these kinds of programs nationwide.
We also report on a silver lining for the nation’s inflation crisis – the Securities and Exchange Commission has just adjusted upwards the thresholds for investment crowdfunding. Each of us can now invest up to $2,500 per year (the ceiling was previously $2,200). With the Dow Jones down over 16% from January 1, local investments are looking better and better.
Finally, a warm congratulations to one of our partners – Project Equity – for winning the 2022 Heinz Award for the Economy. Great work, Hilary and Alison!
– Michael Shuman, Publisher, The Main Street Journal
NEWS
Chicago Mayor Lightfoot Launches Community Wealth Building Pilot Program, City of Chicago (September 19)
An Analysis Of Hospital Procurement Data To Inform Efforts To Diversify And Localize Spending, Brooklyn Communities Collaborative (September 2022)
CDFIs Can Make A Big Difference For Small Businesses Investing In Clean Energy, GreenBiz (September 19)
Biden-Harris Administration Announces Over $8.28 Billion In Investments In CDFIs And Minority Depository Institutions, U.S. Department of the Treasury (September 21)
Inflation Adjustments To Regulation Crowdfunding And Emerging Growth Companies Thresholds, U.S. Securities and Exchange Commission (September 2022)
PARTNER VOICES
Mission Driven Finance Flowed More Than $50M In Assets Into The Community, Mission Driven Finance (August 18)
Co-Founders Of Project Equity, Receive The Heinz Award For The Economy, The Heinz Awards (September 2022)
EVENTS
Local Investment 101 – Online workshop. Dates: October 11, October 18, and November 1. Michael Shuman will be partnering with the Center for Community Ownership and the National Coalition for Community Capital to present a series of workshops focused on local investing in Montana. These workshops, which combine 90-minute classes with 15 videos, will serve as a springboard for the creation of a statewide network focused on the cultivation of Montana's local investing landscape. Non-Montanans are welcome to attend.
Raise Capital On Your Own Terms: Build It, Fund It, Grow It! – Webinar. November 2-4. Gain invaluable insights around raising capital for your business without compromising your vision or values. In three days, you’ll learn how to design an effective investment offer, identify values-aligned investors, and build the confidence and resources to enable your business to grow and thrive. Buy your ticket here. Get a special 20% off discount using the code: “MainStreet20”.
ICYMI
How Public Banks Can Keep Revenue Local And Support Small Communities, The Daily Yonder (September 23)
Numbers Make It Clear: Support Locally Owned Businesses, The Joplin Globe (September 19)
The Black Progress Index: Examining The Social Factors That Influence Black Well-Being, Brookings Institution (September 2022)
JOBS BOARD
Mission Driven Finance is hiring for multiple positions.
BECOME A MAIN STREET CHAMPION
Have you always wanted to start a local investment club? A website of local investment offerings in your community? A local investment study group? Whatever your interest or ambition, we invite you to “go public” to help others in your region find you, scheme with you, and start a local investment movement in your community. Our goal is to identify dozens, then hundreds, then thousands of Main Street Champions like you across America. We already have Main Street Champions across the U.S., from San Luis Obispo, CA to Providence, RI, and even Australia! Together, we can move our hard-earned savings from Wall Street back into our communities. Fill out the intake survey below to join this growing cohort!
SOME OF MSJ’s VINTAGE ISSUES
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 a grant from the Heron Foundation. We welcome feedback about everything, from our design to content. And we welcome suggestions of other groups to involve as partners, and other information to include. Please send ideas to Sophia Leswing at sophia@main-street-journal.com.
PARTNERS
We welcome any nonprofit or for-profit committed to local investment as a partner. If your organization is interested, please contact Sophia Leswing at sophia@main-street-journal.com.