3c hapter - Index of

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