Greetings from Clark Mountain Sanctuary. Here at JED, as each season flows into  the next we grow ever more rooted on this land and in the work of social  transformation. For the past few years, we’ve been working to cultivate a politics  of the possible. We’ve been busy building community, supporting local and  regional social change organizations, growing a small farm, strengthening  our local food system and building an organizational infrastructure to support  this work for the long haul.
                                                                                        
Our long term goals for the JED community are beginning to come to fruition!  They include: the expansion of our organic farm and orchard, the preservation of 305 acres of watershed and wilderness surrounding us, the building of infrastructure  for a sustainable JED community and, in the coming years, the creation of an  education, retreat and resource center that would support work for social, ecological  and economic justice in Maine and beyond.
                                                                                    
We now have a tremendous opportunity before us that can help make all of these goals a reality. For $200,000 JED has the option to purchase the 30 acres of land  and buildings that we call home. In addition, we need $50,000 for necessary  repairs and renovations of existing structures. We are currently working with the Androscoggin Land Trust to raise another $200,000 to purchase a permanent conservation easement for the 275 acre Berry Pond watershed that surrounds JED's home and farm. This is an opportunity that would  allow JED – and this beautiful land – to grow, to expand our work and to ensure  our long term viability. It is an opportunity that we cannot pass up. But to make it  successful, we need your support.

We are hoping to raise the $250,000 for JED's purchase and renovations through an innovative financing method  known as Community Financing. This works by acquiring loans from friends and  supporters in our larger community. We hope to receive loans from people who  believe in the JED project, both its past and its exciting future, and who have  money to invest.

We invite you to participate in this financing project. We see this  as an undertaking that comes with great responsibility on our part, that’s why  we have a sound financial plan and strong organizational system in place for the  tracking and repayment of these loans.

For more information, you can download our Newsletter (.PDF format), read our Frequently Asked Questions (FAQ)  about Community Financing, take a look at our Sample Loan Agreement, and contact us by email or by phone: (207) 946-2246.

We’ve always believed that “Strong is what we make each other.” We know you  believe that too. Now we’re inviting you to invest in that belief. Think it over and  let us know. Thanks for your consideration, your support and for all that you do.
                                                                            
Yours in solidarity,

The JED Collective

FAQ: 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. In more recent years cooperatives and community organizations have begun to formalize the practice and make it legally viable for all participants. There are a variety of ways to implement a community financing model. The JED Collective has chosen a model that has been used successfully by other organizations. We believe it will work well for our friends, family and supporters who choose to participate.

How does JED Community Financing work?

Where do the loans come from?

Loans come from you, JED's community of support. This includes our friends, families, and allies in work for a more just and sustainable world.

What is the use of loan monies?

Your loan will be used to realize JED's dream of rooting our community and project solidly on the land we've been living on for the past six years in Greene, Maine, and to ensure that this land can be shared for years to come. For $200,000 JED will purchase our house and 30 acres of forested land on the southern slope of Clark Mountain, including fields and garden space. This 30 acres completes a conservation area totaling over 500 acres of wild land for which JED will function as a long-term caregiver. For another $50,000, we will complete repairs and additions that are needed to make our house viable and safe for the long-term. This includes major roof work and elecrical repairs, as well as an increade of available living spaces for collective members. 

Who will own the land and buildings?

Clark Mountain Community Land Trust, a member-run nonprofit organization is the legal entity that is purchasing the property. All members of the JED Collective are also members of the Clark Mountain CLT. The two organizations are separate so that the land can be owned and protected perpetually by a non-profit organization, while the daily operations of JED are done through a separate cooperative. 

What are the loan amounts?

Loans range from $5,000 to $50,000. You select the amount that suits you.

What is the range of interest rates?

Clearly, a 0% interest rate is ideal. However, we understand that many people may see their loan as a financial investment, and are choosing between lending to JED or investing this money elsewhere. With this in mind, we are accepting loans with interest rates of up to 4%. Nonetheless, we encourage lenders to consider the many nonfinancial "returns" that will come from participating in the creation of a land-based, social justice oriented community.

What is the term of these loans?

Our loan terms are for 5, 10, 15, 20, 25 or 30 years with the option to renew the loan at the end of each selected term. Our lenders choose which term is best for them.

Thirty years is a typical term for a standard home mortgage from a bank-- this allows people with limited incomes to pay large amounts over time. Unlike a bank or or other institutional lenders, most individuals cannot predict the course of their lives 30 years ahead and therefore are not prepared to commit their assets for that long. This is why our loan system is different. When you lend to JED, we will pay your loan back for the selected term as if it were a full 30-year loan (meaning smaller regular payments than if it were calculated as, for example, a five-year loan). At the end of the selected loan term, we will provide you with two options: you can either extend your loan for another term, or you can request full repayment of the remaining balance of your loan (this is called a "balloon payment").

We will pay these balloon payments by refinancing with other lenders or with increased loans from existing lenders. In this way, members of our community of support can "take turns" in the 30-year financing process without binding up their investments for the entire 30 years.

How often are loan payments made?

JED will make loan payments on a twice-yearly basis, with checks mailed out by the 1st day of June and December.

How will JED pay back these loans?

JED has a reliable six-year track record of paying $1,200 per month ($14,400 per year) for rental of our house and gardens. We anticipate that our total monthly loan payments ($215,000 amortized over 30 years with an estimated average 2% interest rate) will be approximately $739.24. The income that JED will use for loan repayment will come primarily from payments of monthly "shares" (the equivalent of rent) by long-term collective members. Copies of JED's annual financial reports and budget are available upon request.

"Can you give an example of how an actual loan might work?"

A friend of JED (lender) agrees to loan $10,000 at 2% interest for a ten year period. JED pays the lender $221.76 every 6 months (twice-yearly) for ten years. At the end of the ninth year, the lender is given the option to extend the loan for another ten year period (under the same terms) or to be repaid in full. If the lender chooses this balloon repayment, JED pays them the remaining $7,306.42 of principal (the amount of loan still unpaid) with funds borrowed from a new round of lenders. In total, the repaid lender will have received $11,741.85 from JED, resulting in a net gain of $1,741.85 from interest.

If the lender decides to extend the loan for another ten year period, JED will refinance the loan at $7,306.42 and continue by paying $221.76 twice-yearly for the following ten years. At the end of this second loan period, the lender would again have the option to extend the loan or to recieve the balloon payment (in this case, $4,017.02). This process of lending and loan renewal could continue, at the lender's discretion, until the end of the 30 year period over which the loan payments are calculated.

How are these loans secured?

Loans are secured by a legally-binding Loan Agreement, but are not held against the property like a mortgage. The Loan Agreement stipulates that in the unlikely event of JED's dissolution, all of the organization's debts will be paid off before any assets are distributed to other parties (state and federal law require that our assets be transferred to another nonprofit organization in the case of dissolution).

While our loan agreements do provide legal security for lenders, community financing is guaranteed most importantly by our commitment to maintaining relationships of integrity with our community.

Loan agreement / contract

A sample of our Loan Agreement can be downloaded here (.DOC format). 

To learn about other organizations that have implemented a community financing model similar to ours, and from whom we have borrowed many elements of this model, please visit:

www.walnutstreetco-op.org (home of the Walnut Street Cooperative in Eugene, OR), or www.laecovillage.org/elf (home of the L.A. Ecovillage Revolving Loan Fund in Los Angeles, CA).