Community Capital and Communities of Color By Bill Huston Global Crowdinvesting Expert

Hello JMCC Communities and Guest. It is with great satisfaction to introduce one of the most monumental events to occur for underserved communities the passing of Title III of the JOB ACTS of 2012. We have the priviledge of being educated to why this new law has such major financial impact for people of color, underserved communities, and people who wanted access to a financial system that can improve communities and create inter generational wealth.

Community Capital and Communities of Color

By Bill Huston Global Crowdinvesting Expert

Introduction to Community Capital

Community Capital solves a fundamental problem -- our economy doesn't work for everybody, it works great for a very small group of very well connected, wealthy, and powerful people, but works very poorly for the rest of the people, especially communities of color. How do regular and ordinary people take back the community economy and make it work for them? Community Capital is a way to take back the economy and make it work for everybody. The winner takes it all economic paradigm is on the collapse and community capital is one emerging paradigm to replace the old economy.

What is Community Capital

Community Capital provides an opportunity for every group of people to invest, to profit, to own, and to engage in the civic discourse of the community they live in and become socially, politically, and economically empowered! The goal is to have everyone participate in the economy as investors and not just workers and consumers. If your role in the economy is simply as a worker you are feeding labor into the machine or if your only role is a consumer then you are not getting a benefit for your input.  The only way to fully be invested in the economy is as an investor or business owner.

Crowd Investing

In this age of wealth inequality, runaway development and gentrification, it’s easy for communities of color to feel powerless in the face of rapid change. Crowd investing is a revolution in early stage finance and is changing the way communities of color relate to capital formation, real estate development, entrepreneurship, and job creation.

The JOBS Act

The JOBS Act, is transforming how early stage investing and community economic development works. Crowd investing has created the infrastructure for communities of color to shift some of the $3.0 trillion in purchasing power to small community-owned businesses, inner-city real estate development, and tech businesses that lack access to capital to grow and prosper.”

Benefits of Crowd Investing

Crowd investing offers an alternative financing source for developers and entrepreneurs that allow the community to be financiers for deals. As investors, we don’t always necessarily get access to these deals XYZ developer that we’ve never seen or heard of before comes in and before you know it, the entire neighborhood gets turned around. Crowd investing allows individuals to play an active inclusive role in their community. Communities of color can actually see their money being put to work, and potentially get a financial return on the project. Even a single $100 or $500 investment in an apartment complex in Detroit, for example, can help to turn a block and a community around. There is empowerment in it.

Community Capital and Social Capital

Community capital is not only looking to level the "financial capital" playing field but by empowering aspiring community business owners and real estate developers through crowd investment and community economies. But, we’re also trying to level the “social capital” playing field by connecting these same business owners and developers to their communities in relationships that empower the community members.

Community Capital and Inclusive Investing

Community capital creates a new paradigm where investors become customers and brand advocates for the local businesses and real estate development where they invest their time, talent, and treasure. We want to create investors that become customers of the businesses they have invested in and promote their brands on social media, provide business advice, or make valuable connections to potential suppliers, customers, or business partners. We are excited about the potential of crowd investing and community capital to significantly strengthen our entrepreneurs and developers social capital over time.

Takeaway

Community capital is creating an economy where everybody has the opportunity to invest on a level playing field. Ownership is core to power and when everybody has the opportunity to invest and own something in their community they are empowered and will become more civically engaged in their community.

Join Us

If you want to learn more about community capital and crowd investing’s ability to create change in your community, business venture, or small scale real estate development come over to bhec.rocks and learn how to make this information actionable for you and your community.