Banking on people.

The kid was good - phenomenally good. At a Colorado College course on sustainable economics and ecology taught by economist Walt Hecox and me, most students thrive on building a model for sustainable, community-based forestry within a market-driven economy. But this kid, Sam Beebe, was way good. At the end of the course, the professors put young Beebe on the hot seat. He 'fessed up.

It turns out "way good" runs in the family. Spencer Beebe, Sam's father, is president of Ecotrust, an organization he founded in 1991 that combines profit and nonprofit strategies in ways that are attracting attention from both business and philanthropic sectors. The Northwest Area Foundation invested in Ecotrust because the elder Beebe convinced them of a world beyond regulation, where market-driven solutions are used to address environmental and community development issues.

"There isn't enough philanthropy in the world to solve these problems. It goes way beyond the so-called environmentalists. It has to be everybody everywhere," says Spencer Beebe.

Using contacts he developed while working with The Nature Conservancy and Conservation International, Spencer tests his theory that conservation and restoration of natural environments depend not so much on foundation grants as they do on recognizing that economic and social endeavors depend on healthy ecosystems.

But Beebe has gone beyond the walls of academe. He moved directly into the groves of Willapa Bay in southeastern Washington where most forests have been cut at least once and layoffs and conflicts between environmental and timber interests appear to have created a stalemate.

The test is sophisticated enough for an economist or ecologist. That's why many are watching a bank that opened last summer in a little fishing village on the Columbia River. ShoreBank, Pacific lends money to small businesses mixing sustainable ecology with traditional economic pursuits like fishing, farming, and logging. Such risky, resource-related businesses often have difficulty obtaining commercial bank loans.

Ecotrust has already teamed with South Shore Bank in Chicago, which for decades fought the "redlining" trend of conventional banks, clearing the way for small-business lending to blighted urban areas. Now the joint venture will test whether the market can create jobs benefiting the environment.

With the strong support of major grantmakers and the Weyerhaeuser Company, Spencer may succeed where many others have failed. Providing credit is only the beginning. Ecotrust is developing markets that may be even more important to a business' long-term stability.

Learning as it goes, Ecotrust nurtures community organizations in rural areas from Oregon to Alaska through its Enterprise Group's loan fund. Now, with ShoreBank, Pacific, Ecotrust will attempt to provide a permanent source for conventional financing. Opening with only $7.5 million in deposits raised through "EcoDeposits" placed with South Shore Bank in Chicago, Ecotrust now has investors around the world. They have opened more than 700 accounts, including checking, savings, money-market funds, and CD's.

And there's more. The parent corporation, Shorebank, also runs Shorebank Enterprise Group. Soon there will be Shorebank Lands Corporation, a real estate management arm. If Beebe's plan succeeds, perhaps there will be a job for the younger Beebe when the time comes.