Limited co-op associations debut in Spokane
V.2, N.04
In 2019, Washington state passed legislation creating Limited Cooperative Associations (LCAs), which are holding companies that offer a new pathway for investment into worker- and community-owned businesses. LCAs act as a mini-mutual funds, where one check can be invested in a diversified business portfolio. In addition, one-third of an LCAs governing board must be a worker-owner of the entity. Our lead article discusses the Spokane Workers Cooperative, which includes 38 worker-owners across five companies: a brewery, a bakery, a media, an advertising agency, a podcast operation, and a local media company. To date, this LCA has attracted $711,000 in outside investment.
Another intriguing innovation, documented in our second story from Next City, is the entry of private equity into the worker-ownership space. Private equity, of course, usually means deep pockets trying to turn a quick buck. Not a few of our partners have been alarmed when KKR launched Ownership Works, whose preferred model leaves workers with a tiny stake in debt-saddled companies. However, one smaller firm, Apis & Heritage Capital Partners, is watching its step when it transitions smaller private companies into Employee Stock Ownership Plans (ESOPs). The firm’s goal is to convert 8-10 smaller companies into ESOPs over the next five years.
Why does this matter? According to a 2017 study by the National Center for Employee Ownership, worker-owners have 92% higher median household wealth, 33% higher income, and 53% higher tenure rates compared to their peers in various industries.
Finally, you’ll find fascinating articles about how a new food cooperative launched in Dorchester, a mostly black and low-income neighborhood in Boston; how a community land trust in Oakland helped end the longest rent strike in the City’s history with a tenant buy-out; and how the Biden Administration is mobilizing more capital for communities of color through a new Economic Opportunity Coalition.
If you are leading an LCA, ESOP, or cooperative venture, you are – to us – a community hero who should become a Main Street Champion. Please sign up here so that others can learn from what you do.
– Michael Shuman, Publisher, The Main Street Journal
NEWS
How Small Community Investors Helped Get a Boston Food Co-op Off The Ground, Next City (July 26)
Spokane Worker Cooperative Introduces Young Business Model, Journal of Business (July 28)
New Private And Public Sector Efforts To Align Tens Of Billions In Investments In Underserved Communities, The White House (July 28)
Oakland Residents Win Longest Rent Strike In City's History, ABC7 News (July 28)
Can A Private Equity Model Build Wealth For Workers Of Color?, Next City (August 2)
How The Tax Subsidy Game Is Played: A Consultant Shares Corporate Secrets, Nonprofit Quarterly (August 3)
PARTNER VOICES
Native Land Taxes Reclaim Rights, Power, and the Environment, Natural Investments (July 13)
The Rise Of The Gig Economy, Nonprofit Quarterly (August 3)
Grassroots Fundraising With Tom Moroz, The Kassan Group (August 8)
Making Money Over Making Homes, Shelterforce (August 8)
EVENTS
Call To Farms: A Conversation About Localism, Nonviolence, And Creating A Peaceable Economy – Webinar. Sunday, September 11, 12-1:30pm ET. Join Slow Money founder Woody Tasch and a roundtable of leading farmers and financiers for a special conversation on localism, nonviolence, and the ins and outs of “the world’s first non-crypto, non-currency”. Register here.
SuperCrowd22 – Online Conference. September 15-16. National Coalition for Community Capital (NC3) is co-hosting the biggest impact crowdfunding conference of the year. Use the discount code NC3friend to get $50 off the $199 registration price. If you’re an NC3 member, you can access the conference for just $75.
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. Early bird ticket sales end August 15, 2022.
ICYMI
In Michigan, Creating More Resilient Local Economies From The Ground Up, Next City (July 18)
What is Crowdfunding?, Small Business Trends (July 28)
Land Power, Places Journal (July 2022)
JOBS BOARD
New Majority Capital is seeking a Community Manager.
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!
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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 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.