Beyond Local
Slow Money isn’t just about investing locally; it’s also about investing in scalable systems that improve the food system across the country. At its national gatherings, the organization spotlights food companies that want to expand but need loans to do it because there’s not enough capital in their local area.

At the 2010 national gathering at Shelburne Farms in Shelburne, Vt., one of the companies invited to state its case was Coyote Creek Farm, a Texas-based purveyor of grass-fed beef and pasture-raised chicken and eggs, the latter going by the nom de retail of Jeremiah Cunningham’s World’s Best Eggs. The ranch wanted to raise money to build an organic feed mill that would supplement the feed of its pasture-raised chickens with organic grains.

A retired couple from New York City who attended the Vermont gathering liked what they heard about Coyote Creek and talked about it with their financial advisor, Malaika Maphalala, who works at Natural Investments and has offices in Oregon and Hawaii.

As Maphalala explains it, the couple came to her as clients after they were burned during the market crash and wanted to get out of stocks. They frequent the local farmers market and buy organic foods, and they wanted to align their money more with their beliefs about sustainable agriculture and other things important to them.

After consulting with Maphalala, they decided to split their portfolio into thirds comprising socially screened, publicly traded stocks and bonds; community investments and so-called regenerative investments encompassing Slow Money and other direct, high-impact investments.

Coyote Creek would be part of the regenerative portfolio, and Maphalala took it upon herself to do due diligence on its expansion plans. “It took years to come to fruition, but I followed the process on my clients’ behalf to make sure it was investment ready," says Maphalala, who’s been active in the Slow Money Northwest chapter in Portland.

When she thought it was a good time for them to invest, the couple made a $120,000 loan to Coyote Creek at 5% interest over five years, returned in regular, interest-only payments that will be followed by a balloon payment at the end of the loan. “The couple is dependent on earnings from their investments,” Maphalala says. “Because they’re retirees, in the impact sector it’s very important that investments be real safe regarding reliable annual returns.”

Staring this past June, Coyote Creek’s organic chicken feed was made available at Whole Foods Market stores throughout the South. As for Maphalala's practice, she says she has four clients who are accredited investors who make Slow Money-type loans. Slow Money would like to see more advisors and their clients get involved.

“This could be an asset class that grows over time,” says Slow Money vice president Michael Bartner. “At our national gatherings, it’s key to highlight these companies [such as Coyote Creek] because they’re not only important locally but nationally, too. Over time, we hope there will be more ways for financial advisors to engage in this space.”