3c hapter - Index of

More documents

Recommendations

Info

88 Locavesting quickly write off nonperforming loans. Despite that, their net charge- off rates were lower than those at FDIC- insured banks. While the loan funds themselves were in good shape, the entities that supply much of their funding were reeling. In 2008, funding from banks cratered along with the housing market. In New York City, the largest banks cut their community development lending by 20 percent in 2008—despite a 10 percent jump in deposits. A study by the Association for Neighborhood and Housing Development said the decline was part of a longer term and worrisome decline in the “quantity and quality” of Community Reinvestment Act activity. As banks consolidate, there are simply fewer to go around. That’s been partially offset by the conversion of several fi nancial fi rms into bank holding companies in order to participate in the government bailout assistance. These new banks, including Goldman Sachs, American Express, Morgan Stanley, and GMAC, the fi nancing arm of General Motors, are now subject to the CRA. In addition, with much fanfare, some of the biggest banks have made fresh commitments to small business lending through CDFIs—about $1 billion worth between Citigroup, Goldman, JPMorgan Chase, Bank of America, and Wells Fargo from the fall of 2009 through the summer of 2010 (roughly coinciding with the nadir of their public images). On the surface, these commitments are admirable. But in reality, the loan terms in many cases are too expensive or too short term for many community development loan funds. “They’re tailored for maximum PR,” one loan fund executive told me. Indeed, these efforts only underscore how far the big banks have gotten from community- level lending. Writing on the web site JustMeans.com, blogger Michael Hasset observed the irony in one such program, Citigroup’s elaborate $200 million Communities at Work Fund, in which it partnered with the Calvert Foundation and OFN: Genuine cheers notwithstanding, hold on a minute. In order to do neighborhood level lending, Citi now needs to set up a special fund, in which it is a limited partner with
The Biggest- Impact Financial Sector You’ve Never Heard Of 89 two general partners who do all the work. This special fund then lends only to other funds. The other funds then actually make loans to real small businesses and charitable organizations. This seems like a fairly complex reinvention of an ancient wheel once known as banking. Remember institutions like Farmers Loan & Trust, Citizens Building & Loan, Bowery National Bank, Richmond Borough National Bank? They all sound like the bank manager was George Bailey from a It’s a Wonderful Life, don’t they. Bet these banks knew how to “make loans . . . rooted in local communities.” They have something else in common too, all these banks, by acquisition, merger, etc. are part of today’s Citi. 3 But we digress. Foundations, the other major funding pillar for loan funds, have seen their asset values plummet, and many are focused on rebuilding their endowments rather than giving. The only true bright spot for loan funds and CDFIs in general has been an increased level of support by the Obama administration. Individual Investors Play a Bigger Role With CDFIs scrambling to keep pace with demand, many are reassessing the role of individual investors. Today, individuals make up a tiny slice of overall community development loan fund investment. It is easier to collect large investments rather than chase hundreds of individuals, so most loan funds don’t market themselves to the public. In fact, it can be downright hard to fi nd one in your area. “We are not well known and we know it,” says Donna Fabiani of the Opportunity Finance Network. “We need to do a much better job of getting the word out. Micro-enterprise is a household word, but people don’t know what community development fi nance is.” That’s one reason that so many individual investors have turned to the Calvert Foundation, a Bethesda, Maryland–based nonprofi t that acts as an intermediary between CDFIs and individual investors. The foundation’s Community Investment Notes can be bought from most major brokers for a minimum investment
Page 3 and 4:
Locavesting THE REVOLUTION IN LOCAL
Page 5:
For my Mother
Page 8 and 9:
vi Contents Chapter 7 A Model to LI
Page 10 and 11:
viii Preface The moment was ripe wi
Page 12 and 13:
x Preface Cooperatives—businesses
Page 14 and 15:
xii Preface Chapters 7 through 13 e
Page 17 and 18:
Introduction Cereal Milk for the Go
Page 19 and 20:
iconic glass bottles are also sold
Page 21:
Introduction xix funds from the pub
Page 25 and 26:
1 C H A P T E R Motherhood, Apple P
Page 27 and 28:
Motherhood, Apple Pie, and Politica
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39:
Page 42 and 43:
20 Locavesting freewheeling markets
Page 44 and 45:
22 Locavesting A fl urry of legisla
Page 46 and 47:
24 Locavesting put up a sign at a f
Page 48 and 49:
26 Locavesting of the late 1980s) h
Page 50 and 51:
28 Locavesting three of those banks
Page 52 and 53:
30 Locavesting A Return to Value As
Page 54 and 55:
32 Locavesting produced in their re
Page 56 and 57:
34 Locavesting pickles to gin and k
Page 58 and 59:
36 Locavesting is a hot marketplace
Page 60 and 61: 38 Locavesting recognition that the
Page 62 and 63: 40 Locavesting A Grassroots Movemen
Page 64 and 65: 42 Locavesting to dodge their fair
Page 66 and 67: 44 Locavesting Americans know most
Page 68 and 69: 46 Locavesting It’s a powerful qu
Page 70 and 71: 48 Locavesting three employees but
Page 72 and 73: 50 Locavesting to keep in our lives
Page 74 and 75: 52 Locavesting and they can draw on
Page 76 and 77: 54 Locavesting Since 2006, Walmart
Page 78 and 79: 56 Locavesting and political organi
Page 80 and 81: 58 Locavesting havens. Google, the
Page 82 and 83: 60 Locavesting Some of the measures
Page 85: II P A R T Experiments in Citizen F
Page 88 and 89: 66 Locavesting As an editorial in V
Page 90 and 91: 68 Locavesting The community bank b
Page 92 and 93: 70 Locavesting their homes to forec
Page 94 and 95: 72 Locavesting And you don’t have
Page 96 and 97: 74 Locavesting As depositors, we’
Page 98 and 99: 76 Locavesting The Washington Inves
Page 100 and 101: 78 Locavesting The Bottom Line: A n
Page 102 and 103: 80 Locavesting her daughter was enr
Page 104 and 105: 82 Locavesting whom traditional fi
Page 106 and 107: 84 Locavesting Taking the Middle Pa
Page 108 and 109: 86 Locavesting Angel investors poli
Page 112 and 113: 90 Locavesting of $1,000. The notes
Page 114 and 115: 92 Locavesting funds that absorb an
Page 116 and 117: 94 Locavesting • Many CDFIs do no
Page 118 and 119: 96 Locavesting In a twist of fate,
Page 120 and 121: 98 Locavesting private electric com
Page 122 and 123: 100 Locavesting “The numbers were
Page 124 and 125: 102 Locavesting offering. “In a c
Page 127 and 128: 8 C H A P T E R Community Capital I
Page 129 and 130: Community Capital 107 For all the j
Page 131 and 132: Community Capital 109 So it is espe
Page 133 and 134: Community Capital 111 what she did
Page 135 and 136: Community Capital 113 three young e
Page 137 and 138: Community Capital 115 triples every
Page 139 and 140: Community Capital 117 investment is
Page 141 and 142: Community Capital 119 Farmers Diner
Page 143 and 144: Community Capital 121 That’s wher
Page 145 and 146: Game Plan for Locavestors Community
Page 147 and 148: 9 C H A P T E R Pennies from Many W
Page 149 and 150: Crowdfunding Pennies from Many 127
Page 151 and 152: Pennies from Many 129 a 27- year- o
Page 153 and 154: Pennies from Many 131 It’s a win-
Page 155 and 156: Pennies from Many 133 the company w
Page 157 and 158: Pennies from Many 135 there’s a g
Page 159 and 160: Pennies from Many 137 loans. 9 With
Page 161 and 162:
Pennies from Many 139 UK regulators
Page 163 and 164:
Pennies from Many 141 to make the m
Page 165 and 166:
Pennies from Many 143 business—co
Page 167 and 168:
Pennies from Many 145 “Crowdfundi
Page 169 and 170:
10 C H A P T E R Slow Money Finance
Page 171 and 172:
Slow Money 149 like the nearly 8,00
Page 173 and 174:
Slow Money 151 Slow Money, however,
Page 175 and 176:
Slow Money 153 terms that are destr
Page 177 and 178:
Slow Money 155 that overrode that i
Page 179 and 180:
Slow Money 157 Zentay put together
Page 181 and 182:
11 C H A P T E R From Brown Rice to
Page 183 and 184:
From Brown Rice to Biofuels 161 rep
Page 185 and 186:
From Brown Rice to Biofuels 163 Mem
Page 187 and 188:
From Brown Rice to Biofuels 165 $75
Page 189 and 190:
From Brown Rice to Biofuels 167 Wes
Page 191 and 192:
From Brown Rice to Biofuels 169 Inv
Page 193 and 194:
From Brown Rice to Biofuels 171 One
Page 195 and 196:
From Brown Rice to Biofuels 173 tha
Page 197 and 198:
From Brown Rice to Biofuels 175 are
Page 199 and 200:
From Brown Rice to Biofuels 177 rai
Page 201 and 202:
Game Plan for Locavestors From Brow
Page 203 and 204:
12 C H A P T E R The Do- It- Yourse
Page 205 and 206:
The Do- It- Yourself Public Offerin
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219:
• • The Do- It- Yourself Public
Page 222 and 223:
200 Locavesting The exchanges were
Page 224 and 225:
202 Locavesting time, they became m
Page 226 and 227:
204 Locavesting Scott Gehsmann, cap
Page 228 and 229:
206 Locavesting public, while ventu
Page 230 and 231:
208 Locavesting at least $490,000 t
Page 232 and 233:
210 Locavesting been there, he says
Page 234 and 235:
212 Locavesting Schmid would love t
Page 236 and 237:
214 Locavesting their money in some
Page 238 and 239:
216 Locavesting are looking to crea
Page 240 and 241:
218 Locavesting Van Patten, a triat
Page 242 and 243:
220 Locavesting Game Plan for Locav
Page 244 and 245:
222 Conclusion small investments. T
Page 246 and 247:
224 Conclusion investors. “Normal
Page 249 and 250:
Unless otherwise noted, all quotes
Page 251 and 252:
25. John K. Paglia, “2011 Economi
Page 253 and 254:
16. Binyamin Appelbaum, “Investor
Page 255 and 256:
Notes 233 9. Sima J. Gandhi, “Eli
Page 257 and 258:
Notes 235 3. Gary S. Corner and Raj
Page 259 and 260:
2. online.wsj.com/article/SB1200623
Page 261 and 262:
4. Steven Deller, Ann Hoyt, Brent H
Page 263:
Notes 241 11. Ibid. 12. NYSE Eurone
Page 266 and 267:
244 Acknowledgments Dan Keeler, and
Page 268 and 269:
246 Index CDFI. See Community Devel
Page 270 and 271:
248 Index H Hamilton, John, 84-86 H
Page 272 and 273:
250 Index Newman, Paul, 150 Niman R
Page 274:
252 Index taxes, on Internet sales,
show all

3c hapter - Index of

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?