 |
|
|
|
|
|
|
|
|
|
 |
 |
 |
 |
 |
 |
 |
|
||
 |
 |
 |
|
||||||
|
ED
Programs
|
Short-Term Outcomes |
Long-Term
Outcomes
|
Elements
for Success
|
| FINANCE (see WHAT WORKS) | |||
| Tax-Exempt Bonds | When a public authority issues bonds on behalf of private corporations, it lowers its project's financing costs. | Stimulates private investment to enhance an area's economic development. | Conditions are right for private investment as a result of public support. |
| Provides financing when not available in private market. Flexible funding. Loans at a lower interest rate. Provides small loans to new entrepreneurs. | Enable business startups and expansions. Foster job creation. | Availability of entrepreneurial climate and good business plans. Revolving Loan Fund's capitalization from the public sector (federal, state, or local) or private donors. | |
| Loan Guarantees | Reduce risk assumed by the private lender. Enable small businesses to secure financing. | Stimulate economic growth. | Coordination between the institution providing loan guarantees and private financial institutions (works well between the Small Business Administration and banks). |
| Provides access to capital not available through traditional financial institutions. | Stimulate growth of small and medium-sized businesses engaged in riskier endeavors, such as product innovation, technology transfer and research and development. | Availability of local venture capital funds, although they invest throughout the country. Matching angel investors with entrepreneurs in need of financing. | |
| Increase capital base of community development entities. Lower development costs and begin new development. Improve facades, sidewalks, special signage, marketing and security services. | Attract private sector investment to engage in large development projects. Reverse gradual decline in a business district, or respond to competing development. | Involvement of public agencies at the federal, state, or local levels. Businesses organizing and assessing themselves (in BIDS).Availability of private developers with interest in new initiatives. | |
| Grants/Direct Subsidies | Public works grants help communities upgrade physical infrastructure. | Improved infrastructure may help attract new businesses and encourage business expansion. | |
