I have referred to the concept of a "revolving fund" in my
especially in reference to developing a housing project for low-income people...
and in the creating of small businesses. At the time that I put those ideas together
I thought of such a fund in terms of a government funded project. Now,
I realize that it ideally should be funded by investors.
One of my ideas was to create small restaurants in office buildings... even apartment
buildings... determined by potential customers. For every 100 residents or workers,
there would be an available cafe that would offer healthy breakfasts, lunches, and
snacks. Each shop might best be a partnership. The concept was to provide a livable
income for the shop owners, and provide a needed service.
One of the impacts of such an idea is that corporate restaurants like McDonalds, which
sells stock to investors, would see their stock diminish in earnings. It could even put those
unhealthy food providers out of business. People would choose good food at competitive
prices... and begin to see hamburger joints as less desirable. And so... it occurred to me
that the revolving fund should be an investor funded project... perhaps even with a
guaranteed and static earning rate.
With a static earning rate, there is no incentive to force businesses to reduce quality in
order to fulfill a mandate of profitability. A static earning rate is consistent with a person's
savings account in a bank... predictable and dependable and safe. A bank would normally
invest those monies in corporations and Wall Street businesses... and in risky and complicated ventures...
whether a bank depositor might agree with such investments or not. With a fund that is designated
solely to the purpose of loaning money to small businesses... control goes back to the depositor.
A template would have to be shaped that set standards for the operation of such funds... with
such limitations as established salaries for Fund Managers... with guidelines for the franchises
over which the fund resides. For instance, with a restaurant revolving fund... potential franchisees
would have to fulfill a quick study management course and food handling course. There would
be consultants that owners could contact for help. In other words, the template would ensure that
the participants do not threaten the solidity of the fund.
A revolving fund would be given parameters that protected all who are involved in it.
It would not be a wild cowboy operation... profit for the sake of profit. It would be organized with
the intent of giving small businesses a chance to work out their kinks... perfect their own
ideas... but... overseen by the fund managers to prevent default.
As the fund would essentially be a fiduciary it might also be overseen by regulatory agencies
to protect all involved... and perhaps even have those funds guaranteed... although there would be
little risk involved as the loans would be so diffuse across the fund. A failure would be salvaged
quickly and recovery could be inconsequential to the whole of the fund.