Thread by @thischrishorne

An idea to build a brighter future for local news instead of applying band-aids to the moment:

Create a revolving loan fund to start, support and expand local news co-ops and nonprofits.

I think $300M would work. But why should the feds? And how? A long thread... /1

https://twitter.com/dlboardman/status/1249360020652900352

Let's say that $300M funds 500 news co-ops and nonprofits, starting to offset the 2,100 newspapers @businessofnews says we've lost since 2004.

A revolving loan fund means that money goes out then comes back to fund another 500 and so on. /2 usnewsdeserts.com/#1536248669354…

There's precedent too.

In the 1930s, 90% of rural homes didn't have electricity because private companies wouldn't invest in it.

You think quality journalism is expensive? Ha! Imagine running power lines out to the boonies when 97% of US landmass is rural. /3

Even when offered federal loans, investor-owned companies wouldn't bite. So, how did farms and small towns get power? Farmer co-ops came for the loans.

Enter the Electric Cooperative Corporation Act to facilitate consumer-owned co-op utilities /4

electric.coop/our-organizati…

Now "most rural electrification is the product of locally owned rural electric cooperatives that got their start by borrowing funds from (Rural Electrification Administration)" which is now the Rural Utilities Service.

Talk about lasting impact! /5

Back to local news. That $300M fund wouldn't support 500 news orgs for too long, but it'd create enough runway to make the case for community support.

Kinda like how federal loans for electric co-ops gave people in rural areas something to pay for first (aka - electricity). /6

Wanna increase the odds of success? Voltron the powers of @report4america @INN @LIONPubs @WVUNewStart @soljourno @LocalNewsIni @newmarkjschool @CenterCoopMedia, FJP, GNI, etc. to train staff from the top to bottom of these orgs *before* they start publishing. /7

Of course, I'm highly skeptical of any proposal that depends on the government funding things that I like.

Even if they did, in this case, I'd expect that money to end up padding the pockets of investor-owned media companies while more small, indie and nonprofits die. /8

Good news! Philanthropy could create a $300 million revolving loan fund to start and support local news co-ops and nonprofits without waiting on Congress to act.

And, unlike the gummint, foundations have already shown a willingness to support local news. /9

Actually, $300M might be too conservative. Philanthropy could establish a $1B loan fund for local news co-ops and nonprofits if they wanted.

After all, Facebook Journalism Project, @GoogleNewsInit and @knightfdn have each already committed $300M to support local news. /10

How quickly could they build a big ol' local news loan fund if they collaborated with @luminategroup @lenfestinst @macfound @FordFoundation, their colleagues & 100s of community foundations?

Answer: Very.

But why would they? /11

Let me answer a question with a question:

If Clevelanders want to keep the 32 reporters and staff recently laid off from the Plain Dealer working for their community, what are their options?

The answer isn't subscribe to the Plain Dealer. /12

In the UK, village pubs have disappeared as quickly as local news outlets in the US. To address the disruption to their civic life, @PlunkettFoundat fostered a co-op pub movement to help communities buy and run their local pub.

Now, do local news. /13

plunkett.co.uk/more-than-a-pu…

BTW, there are now 120 community-owned pubs across England, many resulting from a £3.85 million fund. None have closed.

Like everything else, the #MoreThanAPub program is on pause thanks to Covid-19 but otherwise, that's a damn good ROI. /14

mycommunity.org.uk/2019/09/12/num…

While I'm deeply grateful for the funding @akrondevilstrip received from @knightfdn, @GARFoundation and @membershippzzle, we almost didn't survive long enough to get that support.

So what do those Cleveland journos do? Opening their own shop is risky enough. But *now*? /15

If this imaginary revolving loan fund existed, laid-off journos could apply for start-up capital and bidness training. And then, whether as a co-op or nonprofit, they could show, not tell, the community how they'll serve the public good before asking for direct support. /16

As a co-op, they'd repay the loan by selling shares to the community, who would hold them accountable. That's better than customers quietly walking away when they're fed up with the product or the business.

As a nonprofit, they could make a stronger case for donations. /17

Either way, there's an idea for you, if you think we need more quality local news outlets and you want reverse decades of contraction and consolidation without pouring money into the solution after that initial investment, whether it's from the federal gov't or philanthropy. /18

Bonus nutball idea: Say you do this and there's a proliferation of co-op and nonprofit local news orgs everywhere. Now build a co-op news operation as the umbrella, filtering up stories from local level to a national audience and feeding reporting/other support down. /19

Headquarter it in the Midwest (say #Akron) to counter the predominant NYC/DC orientation of national news. Make news orgs, news consumers and journalists equal partners in the co-op. Give everyone a say. Strengthen local news and national news all at once. *dusts hands* /end