“There are, it seems, two muses: the Muse of Inspiration, who gives us inarticulate visions and desires, and the Muse of Realization, who returns again and again to say “It is yet more difficult than you thought.” This is the muse of form. It may be then that form serves us best when it works as an obstruction, to baffle us and deflect our intended course. It may be that when we no longer know what to do, we have come to our real work and when we no longer know which way to go, we have begun our real journey. The mind that is not baffled is not employed. The impeded stream is the one that sings.” ― Wendell Berry
As networks grow and transform into active, working communities of practice, we discover how life truly changes, which is through emergence…
As networks grow and transform into active, working communities of practice, we discover how life truly changes, which is through emergence … change begins as local actions spring up simultaneously in many different areas. If these changes remained disconnected, nothing happens beyond each locale. However, when they become connected, local actions can emerge as a powerful system.
The first loan we made at Community Sourced Capital was for $2,950. It involved 31 Squareholders lending on average $100 each. The loan itself was to an entrepreneur in our existing network who was willing to try out our new community finance system. We kept the amount low to keep things easy, and the loan was repaid pretty quickly.
We’ve made a lot of progress since then. We’re a bigger company with more capacity for handling larger loans. This month, we’re making our largest loan to date: $47,000.
Continue reading “Amplifying the voice of community”
There’s something exciting going on with Community Sourced Capital. Two businesses which found success getting a loan from their community are at it again. Last summer, the Adrift Hotel borrowed $18,450 to finance a solar hot water installation for their sustainable hotel in Long Beach, Washington. They took on the loan, executed the project, held a party for their Squareholders, and perhaps best of all, they paid back the loan on schedule.
Continue reading “A community line of credit: when possibility meets potential”
When people put their money to work for a business they can visit in person, an opportunity to see the impact of money in your community is born. Money doesn’t have to be thousands of miles away in New York. It can be just down the road.
We just wrapped up a fantastic loan with The Food Shed, a local business bringing healthy and local food to their community in Kingston, Washington. But we’re thrilled that the campaign brought more than local food to their community. It also brought local finance.
In fact, more than 90% of their Squareholders live within 40 miles of the business. We think that’s a pretty cool statistic, and not just because it’s fun to look at a map of Squares and Squareholders!
When people put their money to work for a business they can visit in person, an opportunity to see the impact of your money in your community is born. Money doesn’t always have to be thousands of miles away in New York. It can be just down the road. (My apologies to anyone reading this in New York. I hope you know what I mean.)
So here comes the part about persistence. Even though study after study confirms that locally-owned businesses improve the quality of life for communities, the collective impact of those businesses is still bundled in a complex set of benefits that are sometimes hard to see. In fact, it took a financial crisis for many Americans to see just how much we had taken for granted all along.
The concept here is simple, and perhaps a little redundant: the value of local finance is in visualizing the connection between your money, the financial system, and the health of your community. There’s a dollar bill at one end of the system, a resilient economy at the other, and a whole lot of thriving small businesses in between.
The photo included in this post is of Pam Buitinvield, an owner of The Food Shed. The photo is from the Kitsap Sun’s article Homegrown Loan Helps Kingston Cafe to Grow featuring The Food Shed and Community Sourced Capital.
Huffington Post article from Stacy Mitchell on the data behind the state of small business lending.
Huffington Post article from Stacy Mitchell on the data behind the state of small business lending.
“Practice alone doesn’t produce work that matters. No, that only comes from caring. From caring enough to leap, to bleed for the art, to go out on the ledge, where it’s dangerous.”
“Practice alone doesn’t produce work that matters. No, that only comes from caring. From caring enough to leap, to bleed for the art, to go out on the ledge, where it’s dangerous.” – Seth Godin
On a cold northwest morning, I spent 30 minutes on the phone catching up with Stephen Hueffed from Willapa Hills Cheese. Stephen is half of the husband and wife team who took an idea for a handcrafted cheese company from a dinner conversation to a growing business in southern Washington. Stephen spoke with me while waiting in the car for his other half, Amy, who was purchasing milk from a supplier they drove to that morning.
On a cold northwest morning, I spent 30 minutes on the phone catching up with Stephen Hueffed from Willapa Hills Cheese. Stephen is half of the husband and wife team who took an idea for a handcrafted cheese company from a dinner conversation to a growing business in Southwest Washington. Stephen spoke with me while waiting in the car for his other half, Amy, who was purchasing milk from a supplier they drove to that morning.
Growing their business has not been easy, and they haven’t tried to go it alone. Their $15,000 loan from 75 Squareholders financed additional cheese-making equipment last year, which helped them increase their production so they could say “yes” when buyers asked for larger orders. That infrastructure loan, coupled with other financing from our local finance partner, Craft3, provided working capital to buy more milk for delicious cheese.
“Prior to these rounds of funding, we would have to decline–or really, stress–about the potential to fulfill those orders,” Stephen told me. When I asked for the secret to his success, he tells it like it is, “Number One, you’re lucky. And two, you’re just stubborn enough to stay with it.”
Amy was recently invited as one of just nine Whole Foods Market Local Producer Loan Recipients to share their products and story with company leadership at a national gathering in Austin. Perhaps it’s a result of Willapa’s ability to grow with opportunity. With those bigger orders comes more responsibility. “We’re in the middle of some of the most rigorous food safety audits we’ve ever been apart of, and that’s just to start selling to a new retailer.” If everything goes well, that rigorous testing will result in one of their biggest orders ever.
The goal isn’t necessarily to get as big as possible. “It’s all relative,” Stephen says. “But the bottom line is that we can’t pay the electric bill based on what we sell to one small retailer. Most small producers top out really quick.” Willapa loves its local stores too, though. They’re entering more local natural foods stores soon. Not all small natural stores like the larger chains. Willapa has to balance those relationships every month–on top of everything else.
Amy returns to the car. Time to get back to work. No rest for these determined entrepreneurs. Stephen ends our call with the same encouraging tone he brings to every corner of his business: “You know, we love it. That’s the core to the whole bloody thing. If we didn’t care, and we didn’t love it, we would have turned back 100 times. And maybe that’s the deal. We’re not lucky. We’re just stubborn.”
Starvation Alley Farms hasn’t stopped moving since we first worked with them a year ago to raise $12,000 for an industrial juicer. In fact, Starvation Alley Farms fueled the very first Square through our lending system.
As the first organic cranberry producers in Washington State, the farm needed a new market to sell their berries. Selling juice to cocktail bars instead of berries on the commodity market revolutionized their revenue model. Instead of traveling from Long Beach to Portland week after week to juice their berries, they were able to buy an industrial juicer to keep at home in Long Beach.
2013 was a year of expanding their juice sales to cocktail bars in Seattle, farmers markets, and even an experimental CSA program to deliver juice directly to people! Recently, their expansion to Portland has found them in a few new locations, and perhaps most exciting, in a great spread from Portland Monthly. You’ve got to see these pictures.
Perhaps the most exciting news from Starvation Alley has been the impact on their own industry. Seasoned farmers have asked SAF to help convert their berries to organic, too. Thanks to the scientific and business expertise the farm has been developing over the last few years, bringing on the second organic farm should be a little easier. To help them finance this next stage, our friends at Craft3, a local CDFI lender, have stepped up with some serious financial support.
People often ask about the story of their name: Starvation Alley. “Starvation Alley,” as deemed during the Great Depression, was the road on the Long Beach Peninsula that housed many hard working migrant farmers. Now, it’s home and work for these cranberry farmers. Though the road is now officially named Birch Street, the locals still call it Starvation Alley. They kept the name as an ode to those that came before and to honor everyone still working hard for food (and drinks).
We’re serious about this local finance thing.
Americans love buying domestic products, they love spending money at local businesses, and it’s practically in our DNA to cheer on ambitious entrepreneurs chasing the American Dream.
We started Community Sourced Capital to chase an American Dream of our own, Continue reading “Serious about local finance”