Matt Holton Matt Kim Erin Malone Claire Williams.

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Matt HoltonMatt KimErin MaloneClaire Williams

Small business is America.3,624,614 establishments with 0-4 employees in the United StatesAnnual payroll of more than $232 billion

Small business is Oregon.

More than 316,000 microenterprises in Oregon86% of total businesses in the stateSmall business is Lane County.Approx. 180,000 people in Lane County employed by microenterprises32,000 microenterprises in the areaWhats broken?Small businesses need capitalCommunities need local development as recession buffersInefficiencies with the way small business get access to capitalFor example. . .

Best option.Microenterprise Development Organizations (MDOs) assist small businesses start by providing training, technical assistance and/or small amounts of capital.

But. . .Reliant on grant fundingLimited Capacity

Opportunity comes calling.Develop a way to connect small business owners to investors while drawing on the expertise and assistance provided by MDOs. Phones calls from community members interested in investing locallyIdea Default rates on microloans is low, due to high level of MDO supportP2P lending.P2P lending connects lenders with borrowers without the need for banks, credit unions, or other financial vehicles.

Existing P2P landscape.

Problems with existing platforms.Not local enoughIf local, not scalableFund enterprises overseasRisk based on traditional assessment methodsNo support networkWhat about us?N2N Capital is a P2P lending platform connecting individual community lenders with local small businesses in need of capital.Draw upon MDOs for supportAccess limited by location: city/county/regionRisk assessment based on community impactCommunity-focused, allows people to invest where they liveRelationship-driven, emphasis on building interpersonal relationshipsHigh degree of business development support

How were different.How it works.

Meet Nancy Brown.

Our model.Relationship with MDOsLocal individual investorsElectronic platformGeographically restrictedMembership-basedTwo types of loans$500-$2,500 short term (1 year)$2,500-$35,000 (3 years)Loans above $5,000 can have multiple investorsEach investor must enter with $1,000Think Prosper/LinkedIn mashup with a touch of Groupon.What you see.

Source of capital.Rise of Angel InvestorsGrowth of sharing economyInterest in community investment

Risk mitigation.MDO supportPersonal relationship between lender and borrowerTraditional assessments + performance + community assessmentMembership requiredNumerous loan offeringsSource of return.FinancialStrengthen the social fabric communityEmployment, wealth creation, educationIncrease resiliency of communityDecrease vulnerability to exogenous shockMultiplier effectStrength of local businesses (We stole this from

)The big picture.

Community ResilienceFinancial Literacy

$ Multiplier Effects $Social FabricN2N by the numbers.

Why Lane County?Size - Large enough to support businesses, - Small enough to create strong sense of community.Demand - # of small businessesLack of alternatives - Access to loansInterested InvestorsScalable.74 Cities in US with population 200,000 to 500,000Platform model easy to replicateMDOs exist everywhereNeed for capital ubiquitousCan be limited to a city or expanded to a region (as population dictates)The big question.Regulatory implications.Lastly.Macro trends toward localization and sharing economiesSolves problems with existing P2P PlatformsLink borrowers + support + capitalThe big picture.

Community ResilienceFinancial Literacy

$ Multiplier Effects $Social FabricSources/Inspiration.Carsten Henningsen, Portfolio 21 & Upstream 21Shawn Winkler-Rios, eDevValerie Plummer, Oregon Microenterprise NetworkJohn Sechrest, Northwest Innovation Resource CenterBeth Hjelm, UO SAC ProfessorBruce Hecht, Oregon Natural StepMichael Shuman, author of Small-Mart RevolutionMichele Henney, UO Accounting ProfessorRon Williams, Attorney Drew Tulchin, Social Enterprise AssociatesThe Big Picture.

Community resilienceFinancial Literacy

$ Multiplier Effects $Social Fabric