Convener: Deb Rhizal
Scribe: Zenaida Hall Beyond 1:00
Attendees: Charles Strickler, Tip Parker, Sam Nickels, Zenaida Hall, Curtis Cambell, Troy Lucas, Frank Tamerrino
Thorton- Creative funding
Lucas- Local collaboration
Curtis- Social finance, BALLE looking at how we as a community find sustainable best practices and work groups. How we create this, a Triple Bottom Line- Local businesses with local banks
Frank- Finding community investors, who are they, what is their interest. Entrepurnural Networks that make monies available for business opportunities. Individuals rely on people they trust and relationships.
Local Exchange Trading Systems, progrssive alternative ideas
Deb- how do create these opportunites. How we could educate and have discussions to build a system
Deb Friendly City Food Cooperative, as an example is there a best practice for seeking additional investment when we have raised almost a million dollars, and still need to reach that additional 400,000. Troy, Where do we find that type of investment.
B Corporation- Triple Bottom Line Concept, Social Venture Network
Look at setting up an investment club,
Troy-similar to a mutual fund, outlining the what will invest in, decide the parameters
how do we develop those types of groups, what is the first step?
Tip-Look at what VA has been doing, the process and filing for a corporation, easy, low cost. Looking at the equity, the emphasis shifts to protecting the investor. Formation of the corp and equity of the investor- the gap is the funding that would allow those creative investment opportunities legally and not in conflict on the federal level.
Curtis- Maine has legitimized these opportunities, creating an electronic exchange.
Tip-Policies that allow electronic exchanges, local trade exchange ideas. ITHICA hours
Frank- Entrepreneurial opportunities out of Nashville,
Deb- How do businesses help each other? Addressing the competive envirnment
assets.
How do we develop new economic development tool is the primary question.
Do the local commerical banks – to increase and protect the small companies investment, investmentor introductions could be part of the service the bank provides.
Deb- Investment 5-10year investment w/4% return. If the business is not viable you lose your investment.
What are the issues of investment, the moral hazard, looking at risk and how do we address the risk.
Deb- Investing locally, the investors are looking at what they are investing in and are thankful
Frank-It is easier to borrow large sums of money than it is to borrow $10,000
Curtis- Thinking local first, but not local only
Troy – More money at the top then there ever has been: the question is how does that money become accessible to small ventures.
Frank – There is an informal network or structure in this community or people who fund ventures.
Curtis – how to you educate people
Frank – Can we make a community foundation that is a profit venture – offers a return on investment.
Tip – A technique: foundation has the option of making program-related investments. They must contribute 5% per year to non-profits to keep foundation status, but now they can also make investments to something (for profit) that they think contributes to their cause.
Deb: Is the face of “informal” community investing changing?
Curtis – Yes, it’s becoming formalized and policies and legalities are happening through social network investing.
Deb: And that shift, is it a positive or a negative or just a difference. Is it making it harder or easier to access these funds.
Curtis: It’s positive. It increases access. It’s innovative and creative.
