Thank you Silicon Valley Bank...
V.2, N.19
Thank you Silicon Valley Bank (SVB) for making the case for community banking a lot stronger. Why risk losing some of your money deposited in a wobbly medium-scale bank like SVB when you can put it in a safe, modestly sized, locally owned bank or credit union? Studies consistently show that locally owned banks and credit unions have lower fees, fewer defaults, and higher interest payouts. And if you care about your community economy, you should be putting your money into community banks or credit unions to grow it.
When a bank is local—by which we mean 51% or more owned by residents nearby—its loans typically benefit local business, and the owners typically exercise retraint on potentially risky behavior. Mid-sized banks like SVB, which pretend to be local, are usually owned by publicly traded holding company—and wind up being accountable to no particular community.
In this issue of the Main Street Journal, we have four articles to remind us about the virtues of community banking. Among the interesting factoids you’ll discover:
In 2016, three-quarters of U.S. small-business loans went to borrowers less than 50 miles from their lenders. The median distance for these loans was 7 miles.
In 2016, about 60% of all commercial loans in Montana and Hawaii came from a tiny number of community banks.
The Federal Deposit Insurance Corp found that in 2016 and 2017 nearly 80% banks with under $10 billion in assets reported that “largely all” of their commercial and industrial loans went to small businesses.
SVB’s failure is also an argument for public banking, as our final article from Truthout suggests. Especially for individuals who are unbanked or communities without local banks, a public option could be important.
Finally, a special welcome to our new, interim editor, Melea Huon-Dumentat. Sophia Leswing is taking a break to study for graduate school exams. Please continue to send Melea interesting articles, commentary, events, and jobs about the local investment ecosystem. You can reach Melea at melea@main-street-journal.com.
– Michael Shuman, Publisher, The Main Street Journal
NEWS
After SVB Collapse, Depositors Weigh Banks Versus Credit Unions, The Street (March 17)
Golis: A Tale of Two Communities - One Wealthy and One Not, Press Democrat (March 19)
Local Banks Could Leave Gaps That Are Hard to Fill, Wall Street Journal (March 18)
America Needs Its Small Banks, Wall Street Journal (March 16)
The SVB and Signature Bank Crash Show Why We Need Public Banking, Truth Out (March 18)
PARTNER VOICES
How Fair Food Network is Reshaping Investment Norms to Fight Wealth Inequality, Impact Alpha (January 31)
Financial Institution Aims to Help BIPOC Business Owners, Albuquerque Journal via Prospera Partners, (February 2)
Inaugural Employee Ownership Equity Summit Builds Momentum , Project Equity (March 2023)
Chicago enlists Project Equity in Community Wealth Building Initiative, Project Equity (March 2023)
EVENTS
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.
NC3: National Coalition for Community Capitol: SuperCrowd23 - Virtual Conference. May 10-11, 2023. Two days of learning about impact crowdfunding that will provide entrepreneurs with invaluable information for fundraising but will also facilitate networking. Use code NC3friend to register for half off. Register here.
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.
Changemaker Showcase - Virtual Conference. April 5, 2023. Join this free event and hear from these entrepreneurs who have taken their businesses from idea to reality without compromising their vision or values, and are contributing to the movement of business. Register here.
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. Register here.
Rural Innovation Webinar Series - Virtual Conference. March 31, April 12, April 26, May 10, and May 12 2023. This free six part webinar series will talk about how discovering how automated intelligence can save you oodles of time to learning the basics and debunking myths of crowdfunding, this 6-part Rural Innovation Webinar Series has it all. Sign up today to learn something new that can help your business. Register for one, or all of the conferences by clicking the video here.
ICYMI
The Coworking Space Putting Black Moms’ Startup Dreams First, Next City (March 7)
Could We End Wealth?, Yes Magazine (February 27)
New Businesses Ready to Contribute to Local Economy, The News-Herald (March 4)
JOBS BOARD
Vermont Community Loan Fund is hiring a Director of Housing and Community Facilities Programs
Vermont Community Loan Fund is hiring a Career Technical Education Loan Program Project Manager
Mission Driven Finance is hiring for multiple positions
Project Equity is hiring a Business Engagement and Partnerships - Outbound Manager
Project Equity is hiring a Regional Engagement Program Manager - California
Project Equity is hiring a Financial Analyst
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 Melea Huon-Dumentat at melea@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 Melea Huon-Dumentat at melea@main-street-journal.com.