Help Shape the ASECO Community Revolving Loan Fund!

Community Meeting: Sunday, January 12th, 2014

Join us for a round table meeting as we shape the community criteria and loan approval process for the ASECO Community Revolving Loan Fund!

This meeting is open to all interested Arroyo S.E.C.O. Network of Time Bank members but will be most relevant for those whom:

• are considering applying for one of our community supported micro-loans

• have questions about how the fund will work

• are interested in shaping review policy

• are interested in serving on one of our Review Panels


Please join us for a very hands-on meeting in the New Year!

Sunday, January 12th, 2014
11am - 1pm
Armory Center for the Arts
Community Room
145 N. Raymond Avenue
Pasadena, CA 91103

Space is limited to 25 people. You must RSVP to Sarah at [email protected] if you'd like to attend.

Facebook invite: https://www.facebook.com/events/1401790446733541/

THANK YOU!!!

www.asntb.com

By Sarah McGowan Dear
Community Revolving Loan Fund Project Developer

Today’s mainstream economy leaves so much to be desired, and undoubtedly its failings are likely one of the many reasons we embrace and value our time banking community as much as we do.

Many of us have already come to the conclusion that money can’t buy happiness. And in fact, much research shows that it’s the quality of our relationships, sense of connection and engagement in community, and access to resources that will determine whether we feel like we’re living the life we want instead of the one allowed us by mainstream paradigms and systems.

In large part, the extractive economy asks us to bear the hefty burden of its machinations - as laborers making less than a living wage, as hopeful entrepreneurs who believe in the “American dream”, as people saddled with far too much predatory debt in the pursuit of education, happiness and an elusive quality of life. But time bankers are people of great agency and the tool we use to create community – the exchange of our time – is proof alone that by looking through a different lens, we can wrestle a great many beautiful things into being just by turning some of these parasitic systems on their heads.

It is in this spirit of innovation that the Community Revolving Loan Fund was created and particularly in partnership with the Permaculture Credit Union. In truth, it would be wonderful to have a local credit union working with us to administer our loan fund, but in our search for a local partner, we were met with blank stares. When asking local banks what they do for the community, we were told, “we give to the United Way.” Though charitable, it’s a strategy that doesn’t directly benefit the community in which they operate. That’s just one example but it says a lot about how little the financial world understands sustainability, community enrichment and human-scale economics.

The Permaculture Credit Union not only understands these principles, but is willing to participate in a loan fund for us that quite honestly is peanuts compared to their other programs. They understand why “small is beautiful” (E.F. Schumacher) and how even a small fund can make a very big impact over time if stewarded thoughtfully.

This week I’ve been working with the PCU’s president, Bill Sommers, on our Memorandum of Understanding that spells out the roles and responsibilities of our loan fund and their credit union. When I asked if we could have a 60-day grace period between signing and repayment, Bill answered, “yes.” When I asked if we could extend the default period to 120 days, Bill answered “yes.” And when I asked if we’d be allowed to get creative to help a borrower in trouble, Bill answered, “of course – you can design this program however you want.” And that’s the beauty of our particular loan fund – we are building it in a collaborative world of yes’s rather than the usual extractive world of patent no’s.

We’ve already done the hard part to give our members access to invaluable resources by leveraging those already present in our community. And by doing so, we’re able to stand together and make many small voices become loudly unified.

It's amazing what an unexpected guest can do to reaffirm what we know already - that the Sharing Economy is one of the most powerful tools to rebuild our communities and local economies! Here ASECO Project Developer, Sarah McGowan Dear, explains why sharing strategies like the Community Revolving Loan Fund and Local Economy Incubator give her hope for a better tomorrow. 

For more information about the ASECO Community Revolving Loan Fund or the Local Economy Incubator, email Sarah at [email protected]

Funding a Better Future for Time Bank Entrepreneurs
Sarah McGowan Dear

Donate to the Community Revolving Loan Fund!

This fall the Community Revolving Loan Fund (CRLF) and Local Economy Incubator (LEI) launched, serving the Arroyo Seco Network of Time Banks (ASNTB). 

Intended to help our community of artisans, entrepreneurs, visionaries and worker-owned cooperatives gain access to resources that often come with a great price tag in the extractive economy, both new projects seek to educate, support and empower the ASNTB through micro-loans and access to professional development.

The CRLF is the first-ever loan fund of its kind to be created by a Time Bank! 

After receiving a development grant (that also capitalizes 50% of the fund) from the Metabolic Studio, a direct charitable activity of the Annenberg Foundation led by artist and foundation director, Lauren Bon, we’re now in the process of raising $5,000 in matching funds from the community to begin lending in January 2014.

Time Bank members are enterprising, resourceful and creative. Many have already launched local businesses, restaurants and worker-owned cooperatives. More of us have developed handmade products such as jams, jewelry, clothing, botanicals and bread. Our fund provides low interest micro-loans to scale up production, upgrade equipment or purchase materials and supplies. 

Loan requests in the amount of $500-5,000 will be considered through a Time Bank developed application and panel review process. From the incredible support of our financial partner, the Santa Fe Permaculture Credit Union, we will retain full control of the review, management and closing process, offering our entrepreneurs access to truly community-supported small business loans that will further help them either improve or establish their credit.  

The fund is especially supportive of women and the economically distressed, ventures that promote environmental and/or community sustainability, ventures that show direct and positive impact on the ASNTB community and social entrepreneurs or cooperatives with a social mission. We hope to see today’s borrowers become tomorrow’s mentors and donors. 

Help us crowdfund this pioneering project! 

Please consider making a tax-deductible donation today to support our enterprising members! Click here to donate. 

And click here to learn more about the history of the ASECO Community Revolving Loan Fund and its eligibility requirements, our financial partner, the Santa Fe Permaculture Credit Union, the Local Economy Incubator, our timeline for launch and the ways you can get involved!

By Sarah McGowan Dear

Last month the ASNTB launched the Local Economy Incubator as part of a capacity building project to support small business and organizational development within the Time Bank.

Members with small businesses, worker-owned cooperatives, and social mission or nonprofit organizations come to the Incubator seeking business development assistance and are matched with Time Bank mentors who provide guidance on everything from good governance and business plan development to legal advice and marketing. Time Dollars are exchanged for these services.

Avid cyclists and community activists Bruce Chan and Nona Vardo met with Incubator mentors Nancy Berlin and Paul Tepper about their innovative project, L.A. Bike Trains.

“As a long-time member of the Time Bank, I naturally turned to this great community resource during the beginning months of the L.A. Bike Trains,” says Bruce.

Over dinner, Paul, an attorney, and Nancy, a community organizer and nonprofit management consultant, helped Bruce and Nona complete the paperwork to apply for fiscal sponsorship so they can operate as a nonprofit. The meeting was as fruitful as it was delicious.

“It was exciting to help Bruce and Nona on their cutting edge project,” says Nancy. “And because we didn't have to worry about ‘billable hours’ like traditional consultants would we were able to take the time to get to know each other, tailor our advice to their needs, and enjoy ourselves too.”

Bruce says the core values of the Time Bank provided a common ground that enriched the experience.

“Paul and Nancy are not only two qualified and experienced professionals, but also two members whom I’ve personally volunteered with in the community,” he explains. “That trust and camaraderie helped to break down the business-like atmosphere of our session, and facilitate a more personal and community-oriented conversation about our goals and visions for L.A. Bike Trains.”

Before participating in the Incubator, Leslie Ezeh knew what she wanted to do, but was nervous about the challenges that lay ahead of her.

“To be honest I was intimidated by the process of starting up a nonprofit,” she says, “which is why participating in the Local Economy Incubator program was one of the best decisions I've ever made.”

After incorporating her passion project, Legends Animated, as a nonprofit, the Incubator sponsored Leslie’s participation at Ami Howard’s HowHap intensive weekend, Make It Happen, to work on her business plan.

“Through the workshops like HowHap and the mentorship provided by the program, I've received so much support and helpful ideas that I'm currently implementing in order to get Legends Animated off to a great start.” Leslie is now in the process of developing a strategic plan with Lony Ruhmann’s help to execute her many goals.

The Incubator is an innovative model for putting our Time Bank’s social capital to work. Designed to work in tandem with the Community Revolving Loan Fund, our hope is that we can provide the ASNTB membership with yet another powerful tool that allows us to continue creating social wealth and community health. 

·      Do you have a brilliant idea but need a little push in the right direction?
·      Do you have a wealth of entrepreneurial experience that you’d like to share?

For information on how you can get involved in the Local Economy Incubator as a participant or a mentor, email me at a[email protected]