How DC is saving small business through investment crowdfunding
V.1, N.12
As investment crowdfunding crosses the $1 billion mark, resourceful communities will begin to incorporate local investment into their economic development strategies. The logic model is simple: small businesses are critical for local prosperity, COVID-19 has challenged the survival of many small businesses, and investment crowdfunding is enabling community members to come to their rescue.
Washington, DC is among the first to get it right. Our lead story describes an innovative partnership between the city government and crowdfunding platform SMBX to develop a “small business bond offering.” Through this framework, DC residents can lend directly to neighborhood businesses and get a return for themselves and their neighborhood. Every city and county in the country should recalibrate their economic development efforts like this. The costs are certainly lower and payoffs higher than luring Amazon headquarters with billions in subsidies.
Other stories describe: how New York City is using its political and financial powers to get predatory lenders to renegotiate billions loaned to its taxi cab drivers; how formerly incarcerated women launched their own worker-owned commercial kitchen on Chicago’s West Side; and how the University of California in San Francisco is setting up a $5 million neighborhood investment fund.
What is your community doing? Are you prepared to lead these efforts as a Main Street Champion? Tell us what’s going on where you live (email sophia@main-street-journal.com).
– Michael Shuman, Publisher of The Main Street Journal
NEWS
Small Business Bonds: A New Way For DC Residents To Invest Locally, Technical.ly (September 16)
Taxi Drivers Invent New Way to Wipe Out Predatory Debt, NextCity (November 9)
These Formerly Incarcerated Women Launched A Worker-Owned Business, NextCity (November 17)
UCSF Launches Community Investment Program, UCSF (November 18)
PARTNER VOICES
Buy Local, Buy Less, Buy Better, Prospera Partners (November 12)
Investment Closes and Construction Begins On Affordable Housing Project in San Diego, Mission Driven Finance (November 16)
New Report on “Grassroots Community Engaged Investment”, Transform Finance (November 18)
What Goes On In The Heads Of Investors?!, Amy Short (November 19)
Evan Edwards Announced As Project Equity’s First CEO, PRWeb (November 22)
EVENTS
IFC Monthly Coffee: Deal Doctors: Impact Investing With Dr. Stephanie Gripne – Webinar. Friday, December 3, 10-11am.
The Funders Network Inclusive Economies Annual Meeting – Virtual Conference. December 1-3, 2021. This year’s theme – Policy, Power and People – is a call to philanthropy to pursue place-focused strategies to advance equitable economic recovery.
The ABC's of Local Investing In Montana – Webinar. Tuesday, December 14, 2-3:30pm EST. Join our publisher, Michael Shuman, to discuss why local investment matters, what kinds of local investments to look for, how to find and evaluate them, and how to tap your pension savings to support them. Non-Montanans are welcome.
ICYMI
Family Wealth Building Isn’t Enough: We Must Pursue Community Wealth Building, Democracy Collaborative (October 15)
What Is Peer-to-Peer (P2P) Lending? Business News Daily (November 15)
A Conversation: Ebony Perkins Of The Self-Help Credit Union, Natural Investments (October 19)
Fundraising For Sustainable Business, Capital Insight Podcast (November 15)
Employee Ownership for Business Resiliency, Succession & Worker Retention – Webinar. Project Equity invites business owners to learn about employee ownership as a viable succession planning option.
JOBS BOARD
Project Equity is seeking a Director of Communications and Marketing and a Director of Advancement. (Can be remote).
Uwharrie Bank is seeking a full-time Loan Operations Specialist. (Albemarle, NC).
Mission Driven Finance is seeking a full-time Real Estate Strategist (for Childcare Facilities) and Staff Accountant. (Both can be fully remote).
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 first cohort!
READ OUR PAST ISSUES
Issue #1 – Intro to The Main Street Journal
Issue #2 – Local climate investments, CDFIs, & agricultural co-ops
Issue #3 – Public banking, a driver-owned Uber, & growth capital
Issue #4 – Plant closure causes disastrous ripple effects on local economy
Issue #5 – Local investing leaders, infrastructure bill, community land trusts
Issue #6 – Microbonds to reverse climate change
Issue #7 - The wonderful world of worker co-ops
Issue #8 - Threats to your self-directed retirement savings
Issue #9 - Local investment opportunity networks (LIONS)
Issue #10 - Supercharge your nonprofits with local investment
Issue #11 - How to buy your neighborhood
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.