Program for investing dollars in local businesses

As this nation continues the struggle to recover from the Great Recession, entrepreneurs will play a vital role in creating jobs and expanding the economy as they currently create 60 to 70% of the new jobs in this country. But many businesses fall victim to one major barrier – access to capital. Since the 1970s, there has been a steady decline in accessing capital by small businesses alongside, per capita, a steady decline in the creation of jobs. A recent study by Pepperdine University asked small business owners their thoughts on best policy instruments to help spur U.S. job creation. The number one answer: “increased access to capital.” The story only gets worse in rural areas as the economic downfall caused many lenders to retreat from rural areas leaving vacant buildings and lost opportunities for rural businesses to get started.

WSU Extension and the Association of Washington Cities are partnering on a project to explore and test an innovative local investment approach that provides access to capital and engages the community in the success of individual businesses. This is about providing information and opportunities for local people with small amounts of money to invest and businesses that need capital.

It’s about connecting the dots between socially-minded citizen investors and locally-owned business and it’s about communities investing in themselves.

Three cities have been selected to participate initially, Chewelah, Davenport and Sequim. Surrounding cities and unincorporated areas are also welcome to participate. Similar clubs have been successfully started in other larger cities but the Port Townsend L.I.O.N. (Local Investment Opportunity Network) Club is one that we will mirror closely because of their great success.

The project will introduce opportunities for local residents to invest locally in businesses they know and for businesses to find funding through an alternative method. We will offer basic investor training in each location during the next couple months. So if you are interested in investing in your community or if you have an existing business or need startup capital, please contact Krisan LeHew at 509-690-8400 or email Krisan@wsu.edu.

Persons with a disability requiring special accommodations while participating in this program may call WSU Stevens County Extension 509-684-2588. If accommodation is not requested in advance, we cannot guarantee the availability of accommodation on site. Extension programs and policies are consistent with federal and state laws and regulations on nondiscrimination regarding race, color, gender, national origin, religion, age, disability, and sexual orientation. Evidence of noncompliance may be reported through your local Extension office.