The Sustainable Communities Framework (SCF) is the result of a decade-long research initiative and modernizes successful time-tested methods for uniting communities in crisis. A localized development model, the SCF employs complementary currencies (CC) to amplify inherent human and natural resources and capabilities, enabling the creation of sustainable, regenerative, people-centered economies.
COMMUNITY COUNCILS
Through community councils, the SCF provides residents and organizations with a blueprint that helps articulate community challenges, prioritize needed solutions and help ensure optimal deployment of program assets.
Self-identifying communities of nearly any size are invited to establish their councils. Members are recruited from a representative cross section of the community, such as small businesses, non-profits, local government, community organizations and other stakeholders.
ENTREPRENEURSHIP DEVELOPMENT
The Entrepreneurship and Workforce development initiative aims to provide a support ecosystem for startup companies and transitioning workers to help prepare residents for the rigors of starting small businesses, and the changing needs of existing regional employers.
Startups matter because companies less than 5 years old generate the most net new jobs yet experience a high failure rate, and thus are the most difficult to get funded. The SCF allows many more startups to be launched than via conventional methods because complementary currency grants can be issued to any entrepreneur able to iterate their plans using the simple development guides provided by SCF partner COventures. The program provides foundational support typical of leading incubators and accelerators, such as mentoring, pitch competitions and team formation. Startups and small businesses achieve proof-of-concept without the burden of debt, thus de-risking conventional funding sources when seeking investment needed to scale their operations.
Current education and training models neither adequately prepare students and transitioning workers for the ever-evolving gig economy, nor provide clear evidence of the soft-skills demanded by employers in the increasingly global marketplace. As most first-timers quickly discover, the challenges of entrepreneurship are not for everyone, and find themselves perhaps better suited as a startup team member, or employee at a more established company. COventures Workforce Development resources tackle these issues.
SMALL BUSINESS SUCCESS
Our SBI is designed to nurture local small businesses (SMEs) and spur economic activity.
By purchasing and selling goods and services partly using complementary currencies, SMEs become eligible for various benefits.
For startups, the SCF provides seed fund grants will help establish the viability of business plans at the important proof of concept stage as well as business incubation and support services.
Participating established businesses will be eligible for:
- No-interest lines of credit denominated in a complementary currency.
- Commissions for selling complementary currencies and recruiting customers to open a UNIEX bank account.
- Grants to bring employee compensation up to a living wage.
- Grants to pay for fringe benefits as a tool for recruiting and retaining employees.
- Grants needed to hire new employees, including paid interns, with potential IRS tax credits.
- Credit and debit card processing, with processing fees paid through the SCF in complementary currency bonuses.
THRIVING NON-PROFITS
Not-for-profit organizations (NFPs, including 501(c)(3) non-profits, local government and non-government social services agencies) nearly universally suffer from inadequate financial resources. Because they fulfill critical roles not covered by the federal government or the business community, they are one of the principal beneficiaries of this initiative.
The SCF provides a region’s NFPs with vital financial resources, both USD and CC. Some will originate from SCC’s general fund, some will be from grants in CC. Non-profits can also directly earn funds—for example, they can:
- Directly earn US dollars in commission for the sale of CC.
- Recruit SMEs to accept CC and receive a commission override on the sales of CC made by those SMEs and/or the users those SMEs recruit.
- Recruit their own supporters to set up a CC checking account and receive commissions each time those users purchase CC.
EMPOWERED & CONSCIOUS CONSUMERS
Buy Local: Spending in local businesses with CC keeps your money circulating longer in your community than spending with dollars.
Share & Donate: Easily share your CC with other individuals, or donate them to your local non-profit to improve your community.
Support Local Businesses: Spending with CC strengthens local businesses providing jobs by keeping their unique goods and services available in the community.
Be a Conscious Consumer: By spending CC you generate donations that support local non-profits, demonstrating solidarity and empowering your community to meet its own needs.
STAGED INVESTMENT
The Sustainable Investment Initiative provides investment funds for local businesses at varying points in their lifecycle. These funds are usually employed at three stages:
- Seed Funding/Acceleration: When early stage companies seek capital investments, i.e., following program proof-of-concept stage.
- Growth Capital: Where a company’s market opportunity exceeds its ability to self-fund immediate expansion.
- Equity Event or “Exit”: When a successful venture is offered for outside investment, restructured via merger or acquisition, or is taken public via Initial Public Offering.
To cover these three phases, SCC will create and manage one or more funds under the SCF program, each established under a separate vehicle called a Small Business Holding Company (SBHC). This article describes how SBHCs work and this one addresses the unique problems of retiring SME owners, a unique “exit” requirement. SBHCs formed in Puerto Rico and other qualifying areas may also take advantage of Opportunity Zone tax savings legislation.