社區經濟發展之融資，著重於經濟發展實務界為探討商業及經濟發展專案之資金需求所需之工具及計畫。本課程首先將概述私有資本市場的制度性架構及運作，以了解資本市場的缺陷以及該缺陷所造成的融資缺口。在第二部分，我們將檢視不同型態的企業融資需求，以及如何分析事業體及其財務報表，以了解其資金需求以及其籌措資金的能力。接下來，本課程將全面考察用以探討融資缺口及獎勵私人投資於社區發展之現行計畫和制度模式，其中包括聯邦經費的資助。方案管理是本課程第四部分的焦點，我們將檢視方案的設計、運作以及資本化等問題。最後，我們將介紹政府財政工具以及其在經濟發展上的應用。

本課程的目的在於提供學生下列知識的基本概念和技能：

1. 了解私有金融市場的運作，以及其適用於經濟發展融資需求上的限制和缺陷。

2. 熟悉用以探討社區和企業融資缺口的計畫模式和制度。

3. 認識聯邦經濟發展計畫。

4. 了解管理經濟發展融資計畫的運作需求及其最佳做法。

5. 介紹政府財政工具及其在經濟發展上之用途。

6. 有能力去挑選可行計畫的方法和模式，以探討特殊發展的融資缺口以及企業資金需求。

7. 有能力去確認可用於達到經濟發展融資目的之制度上和計畫上的財源。

8. 有能力去定義運作經濟發展融資計畫上的組織/ 能力需求。

9. 了解不同的企業資金需求以及用以探討這些需求之合適的融資工具和制度。

10. 介紹企業財務報表的解讀和分析。


閱讀資料和作業

本課程大綱已詳列每一堂課的指定閱讀作業。選讀資料同時列在上面，我們鼓勵學生亦閱讀或瀏覽該等選讀資料。指定閱讀出自下述教科書和一份閱讀資料影印本（閱讀影本集）。

許多堂課包含了將作為課堂討論重點的案例研究資料。為了確定案例中的關鍵事實和細節、發現該案例所引發的關鍵性爭議、並且準備好參與課堂討論，學生必須詳細閱讀案例研究資料。

課程所需的教科書

1. Seidman , Karl F. 《經濟發展之財政學》.

我們將使用這本書在發行前的版本，該資料可以自課堂網頁下載，或者在Copytech的閱讀影本集裡有其影印本。課程閱讀資料亦包含數篇補充閱讀資料。Rotch 圖書館內亦保留其影印本和閱讀影本集供學生館內借閱。


課程要求

除了完成所有指定閱讀資料以及參與課堂討論之外，學生必須完成下列作業：

1. 幾份簡短的案例研究之分析
2. 一份學期企劃案報告

關於以上兩點詳述如下：

案例研究分析

課程大綱中有五個案例研究報告，這些案例研究報告包括財務分析，以及一份探討指定作業所提出之特定問題的摘要報告（以二至三頁為度）。書面討論必須包含指定作業所要求之財務分析結果，並且須將財務分析或財務規劃作為附錄。這五個案例研究的指定作業如下：

學期企劃案

本學期企劃案必須以三或四個學生為一組，在學期中為委託人進行財務規劃。關於財務規劃和委託人的清單和其簡短說明，已列為本課程大綱之附件併同發給學生。一份財務規劃限由一組人員進行。各組成員名單及各組所選取的企劃案應在第七堂課前提出，該企劃案的工作規劃摘要應於第十一堂課前提出，最後的書面報告則應在本課程最後一天前提出。


評分

分數的評定將基於各個學生所展現出其對於本課程相關內容的瞭解，以及其將該瞭解應用在企劃案、方案及發展財務需求上的能力。所有的課堂活動都將列入評分考量，包括課堂參與、案例研究報告以及學期企劃案的表現將各占總成續三分之一。


課程單元和指定閱讀資料

第一部分：課程導論

本堂課將提供本課程內容和目的的概論，並且討論經濟發展的定義以及融資在經濟發展過程中所扮演的角色。


第二部分：企業融資

本堂課將檢視許多用於企業融資的工具，藉以了解負債與增資發行新股的不同、各種不同型式的負債融資（譯註：debt financing，以發行公司債或發行票據等方式籌措資金。）、以及該等融資工具間的利弊。對於企業發展的各種階段和企業資金需求，不同融資工具的適當性也會連同小型企業所面臨不同的資金需求和議題一併討論。最後，我們將檢視與債務工具有關的基本融資條件和計算。

本堂課將會上到會計學基本原理的概述，包括會計原則的檢視、二個主要的會計報表（資產負債表和損益表）以及如何解讀該等報表。現金制會計與權責發生制會計的差異，以及財務報表對於企業現金流量的關係將是本堂課的主題。

本堂課將深入了解財務報表，以發展用以評估公司的財務需求以及滿足這些需求的適當財務工具的分析方法。所討論的主要分析方法將包括現金流量分析、比率分析（譯註：Ratio Analysis，利用某些特定的財務比率，顯示能夠影響公司營運成果的關鍵因素的分析技術。）、以及預測償債能力。我們將提出對於尋求融資的企業之分析架構，其中包括社區的影響、市場與商業的考量、以及財務上的可行性。

學期企劃案各組人員名單及企劃案選定之到期日

本堂課將深入探討營運資金之融資需求。我們將討論何謂營運資金，以及為什麼對企業而言營運資金是重要的。關於「循環式」營運資金需求與「長期」營運資金需求之間的差異，將在談到營運資金的融資工具以及融資機構時一併討論。涉及評估企業對於借入營運資金的需求以及展延營運資金之融資等議題也將一併考量。有關企業（潔亮櫥窗公司）的融資申請的書面分析應在本日交出，並提供一個案例探討該等主題。

潔亮櫥窗公司案之指定作業到期日

固定資產融資對於企業之成長及擴張是不可或缺的。不確定性愈高及償還期限愈長，對於成立未久及小型事業而言，就愈不容易獲得融資。我們將探討有關固定資產融資的不同融資工具以及融資機構、長期性資金需求在融資上的特殊議題、以及固定資產融資在企業成長上的角色，並探討為展延固定資產融資所進行之企業評估。為本堂課所需，學生必須溫習劍橋生物科技案例及相關附件資料，並且準備到課堂上來討論列在案例研究上的問題。

本堂課提供不動產開發專案融資的概述，包括開發預算及融資財源的要素、資產營運收入與成本的要素、以及經濟發展導向之不動產專案的融資議題及需求。學生必須溫習City Plaza案例研究，並計算該資產的最大抵押貸款及融資缺口（如果有的話）。

為了強化學生之技能，以評估企業之融資需求及其進行融資的能力，本堂課將致力於Phoenix Forge案例之分析，並運用社區貸款中心理事會會議的角色扮演方式，考慮 Phoenix Forge之貸款申請。

Phoenix Forge 案例研究指定作業到期日


第三部分：發展融資方案模式與聯邦財源

本堂課之焦點將集中在私有資本市場的制度性架構及運作，包括金融機構的「公開」市場和「非公開」市場。論及該等市場時將著重於他們在經濟發展上扮演何種角色、哪些制度對於以社區為基礎的經濟發展是最重要的、以及發生在私有資本市場的市場失靈和缺陷。這些市場失靈的情形正說明了經濟發展融資方案和制度所設計以探討的融資缺口。

貸款擔保方案是企業透過私有資本市場最常用的方法之一，以增加獲得資金之可能性。本堂課將檢視不同的擔保類型、主要的擔保方案、以及研究所指出該等擔保之影響及其最佳的實行經驗。一我們將用新興科技基金的案例研究來探討為貸款擔保方案所設定的議題。

學期企劃案工作計畫到期日

私有的商業銀行和儲蓄機構作為企業貸款的主要財源，是小型企業及經濟發展專案獲取資金的重要社區機構。作為受政府管制的金融機構，有數種途徑可藉特定規定及管制程序改變銀行實務及擴大銀行為了經濟發展之目的所為之資金供給。依據社區再投資法案，銀行必須證明其滿足所服務之社區的各種貸款需求。自該法案於一九七七年制定後，不管是直接由金融機構發起或是在社區組識的壓力下而發起，對於社區發展擴大信貸，已有廣泛的成果和大量的方案。銀行社區開發公司條例是第二種規範手段，其允許銀行提供更高風險的融資及從事非傳統的活動。在本堂課中，社區再投資法案的歷史和內容，與研究其對於獲得銀行資金可能性的影響將一併探討。匹茲堡經驗將作為利用銀行進行社區發展融資之策略的案例研究，並連同其他研究以確認運用社區再投資法案的最佳實務經驗。銀行社區開發公司條例以及其如何用以實施新的發展融資產品和制度將是本堂課第二個焦點。

銀行可以藉由組織和管理，承擔社區和經濟任務以提供資金。當金融控股公司允許在其他開發活動上增加補充銀行業務時，銀行在供給資金上扮演一個重要金融機構的角色。芝加哥河岸銀行（Shorebank）的經驗提供關於檢視銀行及金融控股公司如何作為社區經濟發展的工具、以及與該發展融資之方法有關之挑戰的借鏡。我們將同時思考為何河岸銀行成功案例僅得到有限的回響，以及在現存的關聯中它啟發了什麼。

威明頓案例研究報告到期日

循環貸款基金（revolving loan funds, RLFs）是發展融資模式中最通常的選擇，並擁有最長遠的歷史。本堂課將檢視某些RLFs 和擔保方案所運用的關鍵性的策略和方法，並且討論重要的原則、議題和最佳實務經驗。

創業投資和類似的股本投資是經濟發展融資上較新近且成長較快的模式，特別是針對以科技為基礎的企業和新科技及產品的商業化發展。我們的討論將會包括這些融資財源的獨特性質、涉及管理創投基金的議題、以及政府政策和最近社區發展創投基金的經驗。加拿大由勞工操控的退休基金對於指標型創業投資的投資經驗，提供了第三種模式。我們也將同時探討麻州社區開發公司的經驗，以思考公開並以社區為基礎的創投基金的策略和管理議題。

以社區為基礎且操控的金融機構已是一個雖仍小但成長快速的發展財源。這些機構的資金來自地區存款或慈善捐款或二者皆有。我們將檢視兩種主要的制度：信貸聯盟和貸款基金，並且探討各自的優點、議題和該種制度下固有的限制。

非常小型的企業其資金和技術協助需求呈現特別的挑戰。在過去數十年中，已發展許多方案以創造和資助「微型企業」，以此作為減少貧窮、協助失業和刺激產生地方工作機會及所得的策略。本堂課中，我們將檢視兩種主要的微型企業的發展和貸款方案的模式，同時也檢視關鍵的運作議題和原則。Taub論阿肯色州誠信基金（Good Faith Fund）的文章，和Sevron對微型企業影響力的評估，提供了我們在課堂上思考微型企業方案的經濟發展貢獻的不同觀點。勞倫斯案例研究（譯註：麻州Lawrence Working Capital，在一九九二年至九八年六年間，提供了五十三個團體、三四四個企業主共七九三筆貸款，貸款總金額九十六萬四千美元，平均每筆貸款金額一二一五美元。）也提供思考增加微型企業方案影響力之相關策略的機會。

本堂課提供經濟發展署（Economic Development Administration, 隸屬美國商務部，）、中小企業署、住宅及都市發展部、以及社區服務局（隸屬衛生服務部）有關聯邦經濟發展計畫的概述。內城區超級市場案例研究將提供範例，以檢驗與使用不同方案有關的優點和議題。

內城區超級市場融資案例研究報告到期日


第四部分：方案管理

確立方案的明確目標並設計可有效達成這些目標的合適基礎是開發成功的經濟發展融資方案的第一步。為考量方案的規劃和設計，我們將探討融資方案與組織的任務和策略有如何的相關、地區資本市場分析在方案設計的角色、以及操作上、制度上及財務因素如何影響方案設計。Dorchester Bay （譯註：位於麻州。）經濟發展貸款基金提供一個範例，以檢視市場分析分法和設計經濟開發融資方案的相關議題。我們也將討論最後課程企劃案所面臨的設計議題和方法。

操作貸款基金的核心能力是在應該決定那一個貸款或投資上做出好的決策、有效監督這些方案順利運作、以及解決問題。本堂課將把焦點集中在這些活動上，包含組織和管理這些機能的決策選擇，以及最佳實務經驗。以有限資源（典型如公共部門和社區組織）做有效之方案管理，以及把融資方案和其他經濟發展資源相連結是重要的關切點。我們將利用波特蘭發展委員會的循環貸款基金的案例研究，做為鑑別最佳實務經驗以及討論改善貸款基金策略和運作之方式的案例。

在有限的資源以及資金需求遠超過可使用基金的情形下，經濟發展融資方案為新投資計畫增加資本至最大限度以及擴大其資本額的要求而管理融資資產，使其不斷受到質疑。我們將分析提高資產使用及擴大資本的工具，並討論如何管理資產及負債以達最大效能。我們將一併檢視發展融資機構的財務模型化。

本堂課將用來檢視以及討論學期企劃案。每一組將就他們的學期企劃案、分析及初步建議做十至十五分鐘的報告。在報告之後將進行問題與討論。

本堂課將用來檢視以及討論學期企劃案。每一組將就他們的學期企劃案、分析及初步建議做十至十五分鐘的報告。在報告之後將進行問題與討論。

本堂課將用來檢視以及討論學期企劃案。每一組將就他們的學期企劃案、分析及初步建議做十至十五分鐘的報告。在報告之後將進行問題與討論。


第五部分：地方融資工具

有多種工具可用以融通政府資本支出、基礎建設的改善及計畫。本堂課將提供地方債券市場如何運作的概述，並討論地方債券結構的主要型態、其相對優勢以及其在企業融資及經濟發展計畫上可能的用途。我們也將討論為經濟發展而利用稅金增額融資。

製造商基金資產重估案例報告期限日

對於收益相當集中於特定區域且支持這些投資的收益可產生自該區域的新稅收而言，賦稅融資和特別區域將是有效的融資計畫或投資。本堂課主要焦點在於介紹特別區域融資，以及探討其在經濟發展計畫中之應用。我們將檢視這些工具對於商業改善區域的應用。奧蘭多利用稅金增額融資以改善其市中心的經驗，將作為案例研究以探討利用這種地方融資方式所面對的議題。

我們將回顧整個學期所學，包括學期企劃案的經驗，來發掘與社區經濟發展融資有關的重要議題和結論。可能討論的領域包含：融資在實現經濟發展目標的角色？在經濟發展融資活動上應遵循什麼原則？在管理計畫與制度時我們可以聲稱的最佳實務經驗為何？發展融資制度可以是資本市場之外的另一個選擇嗎？發展融資制度未來所要面對的主要挑戰將是什麼？

學期企劃案報告到期日

Financing Community Economic Development focuses on the tools and programs available to the economic development practitioner to addresses capital needs for businesses and economic development projects. The course begins with an overview of the institutional structure and operations of private capital markets to provide an understanding of capital market imperfections and the financing gaps resulting from these imperfections. In the second section, we will review the different types of business financing needs and how to analyze a firm and its financial statements to understand its capital needs and ability to support financing. Next, the course will survey the program and institutional models that exist to address capital gaps and stimulate private investment in community based development, including federal funding resources. Program management is the focus of the fourth part of the course where issues of program design, operations and capitalization will be reviewed. Finally, students will be introduced to public finance tools and their application to economic development.

The course objective is to provide students with the following knowledge base and skills:

1. An understanding of the operation of private financial markets and their limitations and imperfections in serving economic development finance needs.

2. Familiarity with the program models and institutions that can be used to address community and business finance gaps.

3. Knowledge of federal economic development programs.

4. An understanding of operational needs and best practices in managing economic development finance programs.

5. An introduction to public finance tools and their economic development uses.

6. An ability to match feasible program approaches and models to address specific development financing gaps and business capital needs.

7. The capacity to identify institutional and program resources that can be used to meet economic development financing objectives.

8. The ability to define the organizational/capacity needs to operate economic development finance programs.

9. An understanding of different business capital needs and the appropriate financial instruments and institutions used to address these needs.

10. An introduction to interpreting and analyzing business financial statements.


Reading Materials and Assignments

Reading assignments are specified for each class in the course syllabus. Optional readings are also listed and students are encouraged to read or skim these materials as well. Reading assignments are from the following course textbook and a photocopied packet of reading materials ("The Reading Packet").

Many classes include case study readings used as a focus for class discussion. Careful reading of the case study to determine critical facts and circumstances of the case, to identify the critical issues raised by the case, and to be prepared to participate in class discussions is required.

Required Course Books

1. Seidman , Karl F. Economic Development Finance.

We will be using the pre-published edition of this book, which will be available on the course website or in a printed version in the reading packet from Copytech. Several supplemental readings are also included in the course reader. The photocopied text and reading packet is also on reserve at Rotch Library.


Course Requirements

In addition to the completion of all reading assignments and participation in class discussion, students are required to complete the following assignments:

1. Several short case studies analyses
2. A term project report

Each of these requirements is discussed below.

Case Study Analyses

Five case study write-ups are described in the syllabus. These case study write-ups include financial analysis and a brief (typically 2-3 pages) write-up that addresses specific questions posed in the assignment. The written discussion should incorporate the results of the financial analysis required in the assignment and include the financial analysis or projections as an appendix. The five case study assignments are:

Term Project

The term project entails a team of three or four students working on a finance project for a client during the semester. A list and brief description of projects and clients is included in a separated attachment handed out with the syllabus. Only one team may work on a project. A list of the team members and the project selected by the team is due by Lecture 7. A brief (2-3 page) project work plan is due on the day of Lecture 11. The final written project is due on the last day of class.


Grading

Grading will be based on each student's demonstration of their knowledge of the course material and capacity to apply this knowledge to projects, programs and development finance needs. All course work will be considered in determining grades, with class participation accounting for 1/3 of the grade, case study write-ups for 1/3 and the term project for 1/3.


Classes and Reading Assignments

Part I: Course Introduction

This class provides an overview of the course content and objectives, and discusses the definition of economic development and the role of financing in economic development process.


Part II: Business Financing

This class looks at the many instruments used to finance business enterprises to understand the difference between debt and equity financing, the varied forms of debt financing, and the advantages and disadvantages associated with different financing instruments. The appropriateness of different financing instruments for various stages of business development and businesses' capital needs is also discussed along with the distinct capital needs and issues faced by small firms. Finally, we will review the basic finance terms and calculations related debt instruments.

In this session, an overview of accounting basic is provided, including a review of accounting principles, the two primary accounting statements (the balance sheet and income statement) and how to interpret them. The difference between cash and accrual accounting and the relationship of financial statements to business cash flow is a key theme for this class.

This class will expand upon the understanding of financial statements to develop analytical tools that can be used to evaluate the financial needs of companies and the most appropriate financial instruments to meet these needs. The primary tools discussed will be cash flow analysis, ratio analysis, and forecasting debt service capacity. A framework will be presented for the analysis of a firm that seeks financing that incorporates, community impacts, market and business considerations and financial feasibility.

Term Project Teams and Selections are due.

This class will look in depth at working capital financing needs. We will discuss what working capital is and why it is important to a business. The difference between "cyclical" working capital needs and " long term" working capital needs are discussed along with the financial instruments and institutional sources for working capital. The issues involved in evaluating a firm's need for working capital borrowing and extending working capital financing are also considered. A written analysis of a firm's (Crystal Clear Window Company) financing request is due today and provides a case example for exploring these topics.

Crystal Clear Window Company Case Assignment due.

Fixed asset financing is essential for the growth and expansion of businesses. The greater uncertainty and longer repayment terms make it more difficult to secure such financing for young and small firms. We will look at the different financial instruments and institutional sources for fixed asset financing, the unique issues in financing longer term capital needs, and the role of fixed asset financing in business growth, and evaluation of a firm to extend fixed asset financing. For class, review the Cambridge Biotech Case Study and attachments and come to class prepared to discuss the questions posed in the case study.

This class provides an overview of financing for real estate development projects including the components of a development budget and sources of financing, the components of a property's operating revenue and costs, and financing issues and needs for economic development oriented real estate projects. Review the City Plaza Case study and calculate the property's maximum mortgage loan and financing gap, if any.

To strengthen skills in evaluating a firm's financial needs and capacity to support financing, this class is devoted to an analysis of the Phoenix Forge case, using a role play enactment of a Community Loan Fund Board meeting to consider the Phoenix Forge loan request.

Phoenix Forge Case Assignment due.


Part III: Development Finance Program Models and Federal Resources

In this session, we will focus on the institutional structure and operations of private capital markets, including the direct "public" markets and the "private" markets of financial intermediaries. Discussion of these markets will emphasize what economic development role they play, which institutions are most important for community based economic development and the capital market failures and imperfections that occur in private capital markets. These market failures define the financing gaps that economic development finance programs and institutions are designed to address.

Loan guarantee programs are one of the most tools use to expanded capital availability to businesses through private capital markets. This course reviews the different guarantee forms, the major guarantees programs and what research indicates about their impact and best practices. A case study of the Emerging Technology Fund is used to explore design issues for loan guarantee programs.

Term Project Work Plan due.

As the primary source of business credit, private commercial banks and thrift institutions are the key community institution in making capital available to small businesses and economic development projects. As government regulated financial institutions, several opportunities exist to use specific regulations and the regulatory process to change bank practices and expand their supply of capital for economic development purposes. Under the Community Reinvestment Act, banks are required to demonstrate meet the full range of credit needs of the communities they serve. Since its enactment in 1977, there have been extensive efforts and programs either initiated directly by banking institutions and under pressure from community organizations to expand credit for community development. Bank CDC regulations are a second regulatory vehicle that allows banks to supply higher risk financing and undertake non-traditional activities. In this class, the history and content of the Community Reinvestment Act is reviewed along with research on its impacts on bank capital availability. Pittsburgh's experience will serve as a case study on strategies to leverage community development financing commitments from banks and along with other research, to identify best practices in using the CRA. Bank CDC regulations and how the can be used to implement new development financial products and institutions are the second focus for this session.

Banks can be organized and managed to supply capital with a community and economic mission. Banks provide a core financial intermediary for supply capital while a bank holding company allows supplementing banking services with other development activities. The experience of Chicago's Shorebank provides a lens for examining how banks and bank holding companies can be vehicles for community economic development, and the challenges associated with this approach to development finance. We will also consider reasons for the limited replication of Shorebank's successful model and what this suggests about its current relevance.

Wilmington Case Study Write-Up due.

Revolving loan funds (RLFs) are the most common alternative development finance models with the longest history and track record. This class will review some of the key strategies and approaches employed by RLFs and guarantee programs and discuss important principles, issues and best practices.

Venture capital and equity-like investments are a more recent and growing model of economic development financing, especially to support technology based business and commercial development of new technologies and products. Our discussion will include the unique nature of these financing sources, issues involved in managing venture capital funds, and the experience of state policy and then newer community development venture capital funds. Canada's experience with labor-controlled pension funds provides a third model for targeted venture capital investing. We will also look at the experience of the Massachusetts Community Development Corporation to consider strategy and management issues for public and community-based venture capital funds.

Community based and controlled financial institutions have been a small but rapidly growing source of development finance. These institutions are privately funded through local deposits or philanthropic support or both. We will review the two major institutional models: credit unions and loan funds and look at the particular benefits, issues and constraints inherent in these models.

The capital and technical assistance needs of very small businesses pose special challenges. Over the past decade, numerous programs have been developed to support the creation and financing of "micro-businesses" as strategies to alleviate poverty, assist the unemployed and stimulate local job and income generation. In this class, we will examine the two primary micro-business development and lending program models as well as review key operating issues and principals. Taub's article on the Arkansas Good Faith Fund and Sevron's assessment of microenterprise program impacts offer differing views of the economic development contribution of microenterprise programs that we will consider in class. The Lawrence case study also provides an opportunity to consider strategies to heighten the impact of microenterprise programs.

This session provides an overview of federal economic development programs administered by the Economic Development Administration, the Small Business Administration, HUD, and the Office of Community Services (in the Department of Health and Human Services). The Inner City Supermarket Case will provide an example for examining the advantages and issues related to using different programs.

Inner City Supermarket Financing Case Study Write-Up due.


Part IV: Program Management

The first step in developing successful economic development finance programs is defining clear goals for the program and designing it to effectively achieve these goals on a sustainable basis. For our consideration of program planning and design, we will look at how finance programs relate to an organization's mission and strategy, the role of local capital market analysis in program design and how operational, institutional and financial factors influence program design. The Dorchester Bay Economic Development loan fund provides a case example to examine market analysis approaches and issues in designing economic development financing programs. Design issues and method faced in the final class projects will also be discussed.

The core competency in operating loan funds is making good decisions on which loans or investments to make and effective oversight of these deals to help keep them on track and resolve problems. This class will focus on these activities, including the options for organizing and managing these functions and best practices in the field. Effective program management with limited resources -- typical of public sector and community organizations -- is prominent concern along with linking financing programs to other economic development resources. We will use the case study of the Portland Development Commission's Revolving Loan Fund as a case example to identify best practices and to discuss ways to improve the loan fund's strategy and operations.

With limited resources and capital needs that far exceed available funds, economic development finance programs are constantly challenged to manage financial assets to maximize capital for new investments and to expand their capitalization. We will analyze tools to enhance the use of assets and expand capital and discuss how to manage assets and liabilities for maximum effectiveness. Financial modeling of development finance institutions will also be reviewed.

This class will be used to review and discuss term projects. Each team will make a 10-15 minute presentation on their term project, analysis and preliminary recommendations. The presentation will be followed by questions and class discussion.

This class will be used to review and discuss term projects. Each team will make a 10-15 minute presentation on their term project, analysis and preliminary recommendations. The presentation will be followed by questions and class discussion.

This class will be used to review and discuss term projects. Each team will make a 10-15 minute presentation on their term project, analysis and preliminary recommendations. The presentation will be followed by questions and class discussion.


Part V: Municipal Financing Tools

Multiple instruments are used to finance government capital expenditures, infrastructure improvements and projects. This class will provide an overview of how the municipal bond market operates and discuss the major types of municipal bond structures, their relative advantages and potential use for financing business and economic development projects. The use of tax increment financing for economic development will be discussed.

Manufacturer's Fund Recapitalization Case Write-Up due.

Assessment financing and special districts can be an effective way to finance projects or investments where the benefits are fairly localized and revenues to support these investments can be generated from new tax revenues from this local area. The primary focus of this class will be to introduce special district financing and explore their application to economic development projects. The application of this tool to business improvement districts will be reviewed. Orlando's experience using tax increment financing to improve its downtown will provide a case study to explore the issues faced in using this type of municipal finance method.

We will also look back over the semester's work, including the term project experiences, to identify key themes and conclusions related to community economic development finance. Possible areas of discussion include the role of financing in achieving economic development objectives, what principles that should guide the economic development finance activities? What can we say about best practices in managing programs and institutions? Can development finance institutions survive as an alternative capital market? What are key challenges they face in the future?

Term Project Reports due.