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| Introduction | |
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| Capital Availability and Economic Development | |
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| The Growing Field of Economic Development Finance | |
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| The Purpose and Design of This Book | |
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| The Role of Finance in the Economic Development Process | |
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| Capital Availability and Capital Market Imperfections | |
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| Capital Market Operations, Market Imperfections And Capital Supply Gaps | |
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| Capital Market Imperfections and Their Implications for Economic Development Finance | |
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| A Framework for Expanding Capital Availability | |
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| The Basics of Business Finance | |
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| Financing Business Enterprises: The Role of Equity and Debt | |
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| Defining Debt and Equity | |
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| Comparing Equity And Debt Capital | |
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| Key Terms And Issues In Equity And Debt Financing | |
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| Hybrid Financing | |
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| Financing and the Stages of Firm Development | |
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| Data On Small Business Capital Sources | |
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| The Use of Equity and Debt in Hypothetical Firms | |
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| An Introduction to Business Financial Statements | |
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| Accounting Concepts and Accrual Accounting | |
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| Financial Statements: The Balance Sheet | |
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| What Do We Learn From The Balance Sheet? | |
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| Financial Statements: The Income Statement | |
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| What Do We Learn From The Income Statement? | |
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| Connecting the Balance Sheet and Income Statement | |
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| Analyzing Business Financial Statements | |
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| A Framework For Firm Evaluation | |
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| Assessing Economic Development Benefits | |
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| Business Plan Evaluation | |
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| Analyzing Financial Condition And Performance | |
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| Financial Projections | |
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| Cash Flow Analysis | |
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| Constructing A Cash Flow Statement | |
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| Cash Flow Analysis For Crystal Clear Window Company | |
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| Determining Debt Service Coverage | |
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| Ratio Analysis | |
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| Profitability And Operating Results | |
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| Short Term Liquidity And Cash Needs | |
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| Capital Structure And Debt Capacity / | |
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| Beyond Ratio Analysis | |
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| The Final Test: Preparing and Evaluating Financial Projections | |
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| Chapter Five Working Capital Finance | |
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| The Importance of Working Capital Finance | |
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| Three Meanings Of Working Capital | |
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| Business Uses Of Working Capital | |
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| Permanent And Cyclical Working Capital | |
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| Forms of Working Capital Financing | |
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| Line Of Credit | |
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| Accounts Receivable Financing | |
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| Factoring | |
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| Inventory Financing | |
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| Term Loan | |
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| Sources of Working Capital for Small Businesses | |
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| Underwriting Issues in Working Capital Financing | |
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| Underwriting Issues in Working Capital Financing Case Study: Crystal Clear Window Company | |
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| Fixed Asset Financing | |
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| Fixed Assets and Business Operations | |
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| Differences Between Fixed Asset and Working Capital Finance | |
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| Implications For Firms | |
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| Implications For Lenders | |
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| Fixed Asset Debt Instruments | |
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| Term Loans | |
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| Mortgage Loans | |
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| Leasehold Improvement Loans | |
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| Leasing | |
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| Sources of Fixed Asset Financing | |
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| Fixed Asset Financing Gaps | |
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| Case Study: Phoenix Forge | |
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| Real Estate Finance | |
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| The Real Estate Development and Finance Process | |
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| Predevelopment Phase | |
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| Construction And Development Phase | |
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| Occupancy And Management Phase | |
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| Financing Process | |
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| Real Estate Financial Statements | |
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| Development Budget | |
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| Operating Pro-Forma | |
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| Determining Supportable Debt And Equity | |
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| Real Estate Debt Instruments | |
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| Pre-Development Financing | |
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| Construction Loans | |
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| Permanent Mortgage Loans | |
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| Mini-Perm Loans | |
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| Bridge Loans | |
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| Underwriting Real Estate Debt | |
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| Sources of Real Estate Financing and Capital Availability Problems | |
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| Financing Gaps For Development Projects | |
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| Case Study: City Plaza | |
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| Policies To Perfect Private Capital Markets | |
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| Loan Guarantee Programs | |
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| Loan Guarantees and Capital Availability | |
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| The Myriad Forms Of Guarantees | |
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| Advantages And Disadvantages Of Guarantees | |
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| Small Business Administration 7(a) Program | |
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| State Loan Guarantee Programs | |
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| Capital Access Programs | |
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| Issues in the Design and Management of Guarantee Programs | |
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| Guarantee Program Policy Levers | |
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| Program Challenges And Best Practices | |
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| Case Study: Massachusetts Emerging Technology Fund | |
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| Bank Regulations And Development Banks | |
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| The Critical Role of Banks in Economic Development Finance | |
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| The Community Reinvestment Act | |
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| History And Overview Of The Community Reinvestment Act | |
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| Using Cra To Expand Capital Availability | |
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| Cra's Impact On Bank Lending | |
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| New Challenges For The Community Reinvestment Act | |
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| Community Reinvesment And The Insurance Industry | |
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| Bank Community Development Corporations | |
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| Bank Cdc Regulations | |
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| Bank Cdc Experience | |
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| Commercial Banks as Development Finance Institutions | |
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| Challenges To Creating And Operating A Commercial Bank | |
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| Special Operating Requirements | |
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| Case Study: Wilmington CRA Campaign | |
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| Institutional Models for Economic Development Finance | |
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| Revolving Loans Funds | |
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| The Revolving Loan Fund Model | |
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| Revolving Loan Funds Characteristics and Performance | |
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| Rlf Characteristics | |
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| Rlf Performance | |
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| Design Issues for Revolving Loan Funds | |
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| Targeting Policy | |
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| Financial Policies | |
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| Capital Policies | |
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| Underwriting Criteria | |
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| Development Services | |
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| Relationship Building Policies | |
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| Management Challenges and Best Practices | |
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| Best Practices In Rlf Management | |
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| Venture Capital and Equity Investment Funds | |
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| The Private Venture Capital Industry | |
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| Fundraising | |
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| Investing | |
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| Exiting Investments | |
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| Implications For Development Finance | |
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| The SBIC and SSBIC Programs | |
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| State Government Venture Capital Policy | |
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| Community Development Venture Capital | |
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| Industy Profile | |
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| Industry Trends And Challenges | |
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| Addressing Venture Capital Challenges | |
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| Strategy Challenges | |
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| Operating Challenges | |
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| Capitalization Challenges | |
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| Community-Based Financial Institutions | |
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| Community Development Loan Funds | |
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| CDLF Characteristics | |
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| CDLF Financing Roles | |
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| CDLF Operating Challenges And Needs | |
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| Community Development Credit Unions | |
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| CDCU Characteristics | |
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| CDCU Lending And Development Roles | |
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| CDCU Operating Challenges And Needs | |
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| Microenterprise Finance | |
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| Three Models of Microenterprise Finance | |
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| Peer Group Lending | |
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| Individual Lending Model | |
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| Training-Led Model | |
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| An Overview of the US Industry and Its Performance | |
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| Program Performance | |
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| Program Outcomes | |
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| The Economic Development Role Of Microenteprise Development | |
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| Design Issues and Management Challenges | |
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| Best Practices in Microenterprise Finance Development | |
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| Marketing | |
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| Training | |
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| Technical Assistance Services | |
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| Case Study: Lawrence Working Capital | |
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| Federal and Municipal Government Finance Tools | |
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| Federal Economic Development Programs | |
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| The Uses of Federal Economic Development Programs | |
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| Small Business Development Administration | |
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| Programs Delivered By Banks And Financial Institutions | |
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| Programs Delivered Through Sba-Approved Intermediaries | |
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| Department of Housing and Urban Development | |
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| Community Development Block Grants | |
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| Section 108 Program | |
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| Economic Development Initiative | |
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| Community Development Financial Institution (CDFI) Fund | |
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| Cdfi Certification | |
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| Core/Intemediary Program | |
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| Small And Emerging Cdfi Assistance (Seca) Program | |
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| Native American Cdfi Technical Assistance Program | |
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| New Market Tax Credit Program | |
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| Economic Development Administration | |
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| Planning Grants | |
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| Local Technical Assistance Grants | |
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| Public Works And Economic Development Program | |
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| Economic Adjustment Assistance Program | |
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| Funding Process | |
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| Health and Human Services | |
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| Case Study: Financing an Inner-City Supermarket | |
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| Municipal Finance Tools | |
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| An Overview of Municipal Debt | |
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| Economic Development Uses of Municipal Debt | |
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| Industrial Development Bonds | |
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| IDB Case Study: New Boston Seafood Center | |
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| Tax-Increment Financing | |
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| The Tax Increment Financing Process | |
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| Economic Development Uses Of Tif | |
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| Issues In Tif Debt Financing | |
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| Assessment District Financing and Business Improvement Districts | |
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| Business Improvement Districts | |
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| Case Study: Downtown Orlando TIF District | |
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| Managing Development Finance Institutions | |
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| Program Planning and Design | |
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| Defining Development Goals and Targeting Strategy | |
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| Growth Fund Example | |
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| Assessing Demand | |
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| Growth Fund Example | |
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| Analyzing Capital Market Supply and Identifying Financing Gaps | |
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| Growth Fund Supply Analysis | |
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| Implementation Needs and Resources | |
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| Implementation Needs For The Growth Fund | |
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| Finalizing Program Strategy and Design | |
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| Case Study: Expanding an Urban Microloan Program | |
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| Managing The Lending And Investment Process | |
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| The Investment Process and Key Management Principles | |
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| Principles For Sound Investment Management | |
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| Marketing and Project Identification | |
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| Marketing Approaches And Audiences | |
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| Effective Marketing Practices | |
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| Project Screening | |
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| Best Practices For Investment Screening | |
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| The Underwriting and Commitment Process | |
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| Best Practices In Investment-Decision Making | |
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| Investment Servicing and Monitoring | |
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| Servicing And Monitoring Options | |
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| Best Practices For Servicing And Monitoring | |
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| Case Study: Portland Development Commission Industrial Site Loan Fund | |
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| Raising And Managing Capital | |
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| Capital Management and Development Finance | |
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| Pricing Loans and Investments | |
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| Managing and Funding Losses | |
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| Raising New Capital | |
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| Grants And Equity Capital | |
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| Debt Sources | |
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| Managing Capital | |
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| Asset Sales And Securitization | |
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| Financial Modeling of Development Finance Institutions | |
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| Components Of The Financial Model | |
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| Creating The Model | |
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| Case Study: Raising New Capital for the Manufacturer's Fund | |
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| Conclusions Part Seven Conclusions Part Seven Conclusions | |
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| Economic Development Finance Practice and Its Future | |
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| Glossary | |
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| References | |