This week Jordan MacLeod (author of Natural Money) and I discuss how community financing might replace a lot of direct government finance. Small governments are over borrowed anyway. And who needs a bureaucrat to decide what we all want?
We talk about Justus Coffee that used a new type of community fund in Nova Scotia to raise $500,000 from residents. PEI has passed legislation to allow this approach too. (link here)
The opportunity is for residents to set up important projects that benefit all as a business with strong support in tax incentives that go to the resident investors. It is 35% from the province and 35% from the feds. I can see local energy and food projects fitting in well here.
In this context we close by talking about the new kind of banker that will be needed. For these are still complex projects that need local expertise. Here we can see the capital markets return to home.
Next podcast we will talk about micro finance - how to pull off a successful Indiegogo or Kickstarter project.
More on these ideas in my book - You Don't Need a Banker to get Credit.
