It's all happening in Nova Scotia
V.2, N.17
If we had the power to reinvent our investment system from scratch, we might insist on giving people an option to create their own pension funds that focus on community problems like food sovereignty, renewable energy, or affordable housing. We might incentive all of us, perhaps through tax credits, to move our savings from global companies into these funds. And we might require companies who are doing business in our communities to have local representation on their boards so that community priorities are always front and center. Luckily, this model has been happening in Nova Scotia for more than two decades in the form of Community Economic Development Investment Funds (CEDIFs).
Our lead article this issue is an offer letter from FarmWorks, a CEDIF focused on small farms and local food businesses in Nova Scotia, which is announcing its twelfth offering of securities to grassroots investors. Over the fund’s lifetime, it has raised more than $4.6 million (CAN) and used that money to provide $8.2 million (CAN) in loans to serve its “strategic goals” which they define as “increasing the supply of food, creating and maintaining jobs and stimulating the economy, and supporting people and the environment.” Nova Scotians investing in the fund have not only gotten a healthy return on their investment but also as much as a 35% credit on provincial taxes.
In the meantime, regional investment funds in the U.S. are beholden to outdated laws that incentivize clunky, top-down approaches. For instance, our second piece, a press release from the Invest Appalachia Fund (IAF), applauds an initial raise of $19 million to address some important, long-overdue economic needs in the region. However, in celebrating that more than 90 percent of the money is coming from outside Appalachia, the IAF is burying the lede. The more compelling story is that there are local community funds and grassroots investors eager and able to invest in these mountain communities. The IAF would do better by leveraging outside money to mobilize local, grassroots investors.
We also have two stories that show how local grassroots investors across America are pushing back. One is about a black-owned barbershop in Little Rock whose owner has launched the state’s first new credit union since 1996. The other is a new bank in Massachusetts called Walden Mutual, which is focusing its loans on local farms and food businesses (like FarmWorks).
Finally I’ve added an amusing link from Amazon Business, which notes that every dollar spent in a local business generates 2-4 times the economic development impacts as a dollar spent in a nonlocal business. I’ve been writing and repeating this factoid for years – literally – and the fact that Amazon, the antithesis of local business, has repurposed it seems like the ultimate act of gaslighting.
– Michael Shuman, Publisher, The Main Street Journal
NEWS
FarmWorks Investment Co-operative Limited Opens Twelfth Offer Of Shares, FarmWorks Investment Co-operative Limited (February 2)
Invest Appalachia Fund Launches With $19M For Community-First Impact Investment In Central Appalachia, Invest Appalachia (January 26)
This Black Barber Opened The First Credit Union In Arkansas Since 1996, Next City (February 7)
New Bank Will Lend And Invest Only In Local New England Agriculture, Good News Network (February 3)
Helping Government Agencies Invest Locally, Amazon Business (February 4)
PARTNER VOICES
Building Public Support For Employee Ownership: Lessons From Colorado, Nonprofit Quarterly (February 15)
Diversified Community Investment Fund: A Versatile Vehicle for Democratizing Capital, Cutting Edge Capital (February 17)
Employee Ownership And The Fight For Economic Equity, Project Equity featured in “A Change is a Chance” podcast (February 14)
EVENTS
Remaking The Economy: Caring For The Care Economy – Webinar. Wednesday, March 15, 2-3pm ET. Featuring Adria Powell (Cooperative Home Care Associates), Jenn Stowe (National Domestic Workers Alliance), and Mary Wilder (Shine Nurture Center, part of the Co-op Cincy network), panelists will discuss how both advocacy and worker ownership can transform working conditions in the care economy. Register here.
Connecting Capital To Neighborhoods That Don’t Normally Get It – In-Person Conference (Jackson, Mississippi). April 24-26, 2023. Jackson, with its 80% Black population, in the poorest state in the nation, provides a clear example of the racial wealth gap. The tools that Neighborhood Economics is identifying can be deployed in Mississippi to repair the damage caused by the connection between race and poverty. This event will bring together investors, philanthropists, entrepreneurs, problem-solvers, and people of faith in a city that needs them all.
11th International Public Markets Conference – In-Person Conference (Toronto, Canada). June 8-10, 2023. For over 35 years, the International Public Markets Conference has brought together visionary market managers, community advocates, and civic leaders to explore the changing forces that are shaping public markets today.
Total Impact Summit 2023: Investing for People, Planet, and Place – In-Person Conference (Philadelphia, Pennsylvania). May 1-2, 2023. A two-day, dynamic event for individual investors, family offices, foundations, fund managers, and financial advisors to connect with aligned peers and partners, learn about proven and new investment tools, meet leaders of investable opportunities, and move toward action and investment. See FAQ here.
ICYMI
First New Black Bank In 20 Years Breaks The Mold For Raising Startup Capital, Next City (February 14)
Worker Co-op Offers Housing To Low-Income Earners In Vancouver, Vancouver Sun (February 11)
Can Tearing Down Freeways Bring New Life To Cities?, YES! Magazine (February 10)
JOBS BOARD
LIFT Economy is hiring a Next Egg Community Manager.
Fair Food Network is hiring a Director of Double Up Food Bucks Michigan.
Mission Driven Finance is hiring multiple positions.
FREE SHORT VIDEOS ON LOCAL INVESTMENT
If you don’t have time for a full-on workshop, you can get a “taste” of the answers to your most pressing questions about local investment. We have prepared a series of 5-10 minute videos that you can find posted on our website under the “Local Investing Videos” page. Or click on the links below to be directed to videos based on topic:
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.