The NIL: A Local Investment Engine That Doesn’t Leak

Most neighborhoods are built for people.
The NIL is built with them. And by them.

The Neighborhood Investment Loop (NIL) is a repeatable, neighborhood-scale investment system that keeps capital circulating locally. It’s designed to help residents, small investors, and community stakeholders fund tangible, visible, revenue-generating projects—and share in the upside.

This isn’t charity. It’s community-powered capital that stays on the block.

What Is the NIL?

The NIL is a five-phase framework for reinvesting in neighborhoods from the inside out.

It’s a micro-fund model with circular flow capital goes in, projects get built, value is generated, and a portion loops back to fund what’s next. Rinse and repeat.

The Five Phases of the Loop

1. Originate
A community-led process identifies low-risk, high-impact micro-projects such as:

  • Small-scale housing rehabs (1–4 units)

  • Vacant storefront activations

  • Community-serving business spaces

  • Cultural infrastructure and streetscape improvements

  • Site prep or land banking for future development

Each project must be visible, viable, and community-benefiting.

2. Loop Capital
Funds are raised from multiple aligned sources:

  • Local residents and small investors

  • Philanthropic seed capital (often low-interest or recoverable)

  • Social impact funds and CDFIs

  • Local institutions and credit unions

Typical loop sizes range from $25K to $2M.

3. Deploy
Capital is deployed across 2–6 projects per loop.
These are small bets low complexity, high visibility, fast execution led by local builders, entrepreneurs, nonprofits, or community organizations.

Each project includes a mechanism to return value to the loop, such as:

  • Rent or revenue-sharing

  • Partial ownership

  • Resale profit split

  • Long-term lease or licensing

4. Return
As projects generate value, a portion flows back to:

  • Local investors (if applicable)

  • The NIL fund, to seed the next loop

  • Neighborhood activation, maintenance, or programming

Returns are intentionally modest (often 3–7% annually), but layered with non-financial returns like vibrancy, stability, and belonging.

5. Re-loop
Each return cycle strengthens the system. Capital, trust, and capacity grow. Over time, this builds:

  • A self-reinforcing investment engine

  • Locally controlled capital

  • More resilient and inclusive development

Why a “Loop”?

Traditional development is a one-way funnel: outside money flows in, value gets extracted, locals are left out.

The NIL flips that.
It starts local. It stays local. It loops forward.

It’s not just development in a neighborhood.
It’s development by the neighborhood.

What Makes the NIL Work

Modularity
Can operate at the block, corridor, or district level. Scales with clarity, not complexity.

Right-Sizing
Multiple small projects > one big risky one. Momentum builds trust.

Inclusive Ownership
Locals can participate with as little as $5 a month. You don’t need wealth just will.

Flexible Return Structures
From revenue share to community notes, the NIL supports blended finance and custom return models.

No Extraction
This is a closed-loop system. Value generated in the community stays in the community.

Who Runs It?

Each NIL loop is stewarded by a Local Loop Steward a trusted, embedded community operator like a organization, B Corp, CDC, LLC or civic group.

Their role:

  • Coordinate capital

  • Vet and support projects

  • Manage returns

  • Serve as the communication and trust hub

Urban Spaceship is currently setting up the first NIL pilot site, with Loop Back Lending Pools and stacked capital baked into the development from day one.

The Bigger Picture

The NIL isn’t a silver bullet. It’s a counter-framework to top-down, extractive models that leave communities behind.

It replaces master plans with modular loops.
It turns renters into stakeholders.
It gives neighborhoods leverage not just feedback forms.

We don’t need new buzzwords.
We need better tools for collective agency.

Ready to Build a Loop?

Whether you're a:

  • City looking to pilot new models

  • Neighborhood with ideas ready to go

  • Funder tired of one-sided ROI thinking

The NIL is open-source. Ready to deploy. Built to loop.

Let’s close the gap.
Let’s close the loop.