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Community Capital 111<br />
what she did have: “Instead <strong>of</strong> a wealthy individual, a rich community,”<br />
she wrote. “That’s pretty magical to me.” 6<br />
So she and Fitting fl oated an idea: Would the residents that<br />
welcomed them so warmly consider investing in the bookstore to<br />
make it a reality? The answer was a resounding yes. The duo raised<br />
a total <strong>of</strong> $70,000 from more than two dozen friends, neighbors,<br />
and book lovers.<br />
Lenders were issued promissory notes and were allowed to<br />
choose their own interest rate between 2.5 percent and 4 percent—<br />
a little above prime. Interest payments would kick in after one<br />
year and would be paid in quarterly installments for fi ve years.<br />
Two people lent $10,000 or more and are part <strong>of</strong> the bookstore’s<br />
advisory council. In addition, all community lenders receive a<br />
30 percent discount on purchases for the life <strong>of</strong> the loan as well as<br />
other perks, which has kept them coming back. As with the LION<br />
group in Port Townsend, Washington, the Greenlight deal was<br />
predicated on the pre-existing relationships that characterize a<br />
community. Such small, private friends and family investments are<br />
generally allowed, although interpretation <strong>of</strong> the laws varies. Other<br />
community investments may qualify for in-state or other federal<br />
securities exemptions.<br />
Along with their own savings and a $150,000 small business<br />
loan from a fund set up to help local businesses after 9/11, the partners<br />
gathered the nearly $350,000 needed to open the bookstore.<br />
A local architecture team created a bright, welcoming space, and<br />
neighbors pitched in to paint, stain shelves, and unpack boxes. As<br />
a torrential rain fell on October 16, 2009, Greenlight Bookstore<br />
opened its doors to the public, and it has thrived ever since. Defying<br />
the gloomy outlook for bookselling, the store was turning a pr<strong>of</strong>i t<br />
and beating expectations after just one year. “The support from this<br />
community has been amazing,” says Stockton- Bagnulo.<br />
A big part <strong>of</strong> its success is the way she and Fitting cater to<br />
their very diverse and eclectic community. They hold readings<br />
and events, usually two or three a week, with an emphasis on<br />
local and literary authors. A table is devoted to Brooklyn writers,<br />
many from right there in the neighborhood. “It’s always groaning