Background

Lean more about why we bought a building, and the status of renovations, here.

What is Community Financing?

Community financing is an alternative way to purchase land and buildings without the use of banking institutions. It’s a financing system based on community participation, trust, and accountability. The Community Financing model has been used informally for generations, and in more recent years cooperatives and community organizations have begun to formalize the practice and make it legally viable for all participants.

Goals and Values

Community financing for us has a number of interconnected values-based goals, which we recognize are means to an end until the day comes when critical resources are collectivized:
    *To create a viable model for grassroots, relationship-based financing that eliminates the involvement of for-profit banks in the ownership of land and cultural infrastructure.
    *To offer an ethical investment and savings option for people in our wider community who want their money to do good work while also retaining reliable value over time.
    *To build on our model of engagement that seeks to foster genuine community and connection as a pathway to expanded community organizing.
    *To allow us to meet our need of securing long-term space for Rhizome by means of a process that relates directly to our mission and vision.

Budget & Timeline

We raised $350,000 in combined donations and loans in April-May 2024. We need to raise a total of $200,000 more via these loans and/or tax deductible donations by March 1, 2025. (You can DONATE HERE.)

Where does the money come from?

Loans come from people in our community who have savings that they would like to invest in support of our work, or who are seeking alternatives to conventional market-based investments.

How much do people lend?

Loans can range from $2,500 to $10,000 Each lender selects the amount that suits them, and we encourage a mix of both smaller and larger loans. Please reach out via email if you are interested in loaning us less than $2,500 or more than $10,000.

What is the duration of a community financing loan?

We will be offering loan terms of either 10 or 15 years, according to the preference of each lender. All loans will have been repaid in full at the end of the term.

What are the interest rates on these loans?

We understand that many people may see their loan as a financial investment, and are choosing between lending to Rhizome or investing this money elsewhere. We also know that many people are seeking investment options that prioritize social benefit over high returns and would gladly put their money into a program that does good work in the world if they can be assured that their money will retain its value over time in the face of inflation. We offer custom interest rates for each loan, ranging from 0% to 5% APR, so that lenders can balance these needs and values for themselves. We also encourage lenders to consider the many nonfinancial “returns” that come from participating in the success of Rhizome.

How often are loan payments made?

To minimize administrative work, we will pay back community financed loans with two annual payments.

How is the loan secured?

Each loan is secured by a formal loan agreement defining all terms and conditions precisely. Ultimately, as our loan agreement states, “the security of the Loan is based on trust, on the integrity of relationships with Rhizome DC and its Board of Directors, and on the legal power granted to this Loan Agreement under the laws of the United States and of the District of Columbia.”

What is your inspiration, and how can I learn more?

Rhizome is using Land in Common as our model. Land in Common is a nonprofit community land trust and land justice advocacy organization in Maine. Community financing has been an embryonic approach gestating in our collective uterus for some time now. It is a perfect embodiment of Rhizome’s ethos of distributed ownership and community engagement. Finding Land in Common’s resources online gave us the confidence to go ahead and birth this baby. As their website states, Land in Common’s model was adapted from the practices of the Walnut Street Co-op in Oregon and the Los Angeles Ecovillage. Much of this text was borrowed or adapted from Land in Common.

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