RIVER LIN offers new option for local investors, businesses

BREWSTER/PATEROS – A year ago this month a group of local volunteers came together to pursue an idea to form a venture to “promote economic vitality” in the Brewster/Pateros communities. From that meeting, Rural Investment Ventures for Economic Resilience (RIVER) was born and is now offering its services online at riverlin.org.

The organizers enlisted the expertise of Trevor Lane, PhD, Director of WSU Ferry County Extension and the Ferry LIN, who explained the purpose and goals of a local investment network (LIN) and the collaborative effort between WSU Extension and the Association of Washington Cities (AWC) to inspire LINs around the state.

A LIN connects local business owners in need of capital with local investors with the mission to keep local capital rooted and revolving within the community, according to WSU’s Metropolitan Center for Applied Research and Extension.

Lane described a LIN as different from a venture fund, bank, or financial institution. Rather it is comprised of individuals who support surrounding businesses by putting their funds to work within their neighborhoods.

LIN investors can see where their money is going and who it is helping locally.

An early success and one the RIVER founders looked to for an organizational template is the Methow Investment Network (MIN) started in 2017. Promoted by the local non-profit TwispWorks, MIN’s mission “to increase the economic vitality of the Methow Valley through agriculture, education, technology, arts, and culture” produced early results.

“A lady from Washington State Microenterprise Association called to say that the local investment network idea is taking off all over the country,” said Gene Dowers, one of the RIVER founding members, “and Washington State is leading the pack.”

And MIN is considered the gold standard among LIN startups.

In its first year MIN injected nearly $900,000 from 39 local investors into local projects. Initial response drew 68 inquiries and 13 formal funding applications that culminated in funding of seven local businesses with a net benefit of 15 new jobs in the community.

The first LIN in Washington was pioneered in Port Townsend in 2008 to serve locally owned businesses in East Jefferson. The concept soon spread to other locations including Thurston County, Clallam County, and Chewelah

“As we witnessed our communities rebuild homes and infrastructure after the devastating wildfires of 2014 and 2015, it was clear that local businesses and entrepreneurs also needed support to gain a foothold, recover, and grow,” said a statement on riverlin.org. “Access to capital is a significant barrier.”

Dowers, Executive Director of the Pateros-Brewster Community Resource Center (PBCRC) and fellow volunteers Lane, Grace Larsen, PBCRC Director, Mike Mauk, owner of Mauk Fishing Stuff and president of the Brewster Chamber of Commerce, and Anna Marie Dalbey, managing broker of Keller-Williams Realty NCW teamed up to form RIVER.

Investors and businesses alike work through an application/questionnaire/agreement process through the riverlin.org website. The organization functions as a matchmaker working directly with members and businesses on investment opportunities.