Over the past three years, I've heard countless stories from community members yearning to build their small businesses, achieve the American dream, and close the wealth gap. My research, focusing on creating generational wealth for communities of color, has identified key policy opportunities that can reduce historical harms and pave the way for a more equitable future.

We are excited to share that we have secured a meeting with Assemblymember Dr. Joaquin Arambula to share our stories. To demonstrate the collective support of our community, we have drafted a Community Action Plan that outlines ways to help small businesses thrive. Now is the time for us to join together, unify our community, and take action to create new pathways to ownership and sustainable economic opportunities for minority communities.

What brought us to this pivotal point?

Summary of the DRIVE Initiative and Grant Work

In 2020 we received a three-year grant from the James Irvine Foundation to develop strategies for creating generational wealth in communities of color under the DRIVE Initiative. This effort was collaborative, with partners such as United Way, Fresno EOC, Access Plus Capital, Wells Fargo, and the California Endowment. Our final report outlined numerous pathways out of poverty, focusing on two primary areas: the creation of a co-op model and a Community Investment Trust (CIT). Our core finding was that ownership is the most critical factor in helping families break free from poverty and build lasting wealth.

Community Investment Trust (CIT) Model

The CIT allows the community to purchase and collectively own commercial real estate, turning tenants into shareholders who participate in profit-sharing. For example, the Vision View property, purchased for $2 million, is now valued at $4.5 million after being paid off. This $2.5 million in equity can be reinvested in the community to acquire additional properties for small businesses. The California Endowment, the Senegal Family Private Trust, and the Central Valley Community Foundation were significant contributors, making it a fully community-owned asset.

Development of the Co-op Model

A co-op, or cooperative, is a business model where members jointly own and operate a business, sharing in its profits and decision-making. 

We have come so far—completing the research, developing strong partnerships, piloting successful initiatives, and securing the win of property ownership—but we still need a bit more support to turn these promising policies into reality for every small business owner.

To build on our efforts, we have developed six long term investment strategies designed to invigorate the economy and foster sustainable growth in our community.

Promising Program & Policy Solutions

1. Community Equity Matching Fund: A state-backed fund that matches local community investments dollar-for-dollar to purchase and develop properties, prioritizing projects that convert commercial or residential properties into community-owned assets.

Example: A local neighborhood CDC aimed to purchase a sizable property to prevent outside investors from developing it in ways that don't align with the community's needs. Without a community investment pool, we couldn't secure the property, and it was sold and converted into a trucking lot in a residential area. This missed opportunity could have provided much-needed services like daycare centers and educational facilities for low-income families. The lack of accessible capital highlights the need for community-driven development.

Programs like the Neighborhood Loan Fund and Community Investment Trust directly support the economic empowerment of underserved communities by providing capital and ownership opportunities, significantly reducing economic disparities.

2. Zoning for Co-op and CIT Models: Create specific zoning categories that support cooperative businesses and community-owned properties, making it easier to establish and operate these models.

3. Designate specific neighborhoods or areas as "Community Wealth Building Zones," offering targeted support and resources to spur community-driven economic growth.

4. Public-Private Partnership Hubs: Establish hubs where public funds are matched with private investments to support community-driven economic development. These hubs would focus on creating jobs, increasing homeownership, and developing local businesses within the designated zones.

5. Tenant-to-Owner Conversion Grants: Offer grants to tenant groups that wish to purchase their buildings and convert them into cooperatives or community land trusts.

6. Protection for Nonprofits and Small Businesses: Extending rent protections and offering grants for facility modernization and energy efficiency.

 

A Call to Action

We believe these strategies offer a clear pathway to a more just and equitable society, where economic opportunities are accessible to all. We urge you to champion these initiatives and work with us to turn these ideas into actionable policies, building a stronger, more resilient community where everyone can thrive.

 

We Need Your Support!

We invite you to take action by signing on to our Community Action Plan. By adding your name, you show our lawmakers that these issues matter to our community and that we are united in creating a better future for everyone.

 

How to Sign On:

Read the Plan

Add Your Name: Reply to this email with your full name and any additional information you would like to include.

Spread the Word: Share this email with friends, family, and neighbors who care about these issues and encourage them to sign on as well.

Deadline for Signatures: September 3rd, 2024

 

Thank you for your continued support and commitment to our community. Together, we can make a meaningful impact and ensure that our voices are heard. If you have any questions or would like more information, please do not hesitate to contact me.

 

Lynisha R. Senegal

Advocate for Entrepreneurs

Helping Others Pursue Excellence

Vision View Business Formation Center

www.visionviewca.com

559-681-7814

 

Let’s stand together for a brighter future!