Economic Development Finance
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Economic Development Finance



© 2005 | 520 pages | SAGE Publications, Inc
"Incredible.  What a major contribution, just to pull together the diverse array of information out there about development finance into one volume.  I consider this book an 'education' for the lay reader, and a fabulous resource for the practitioner of development finance." –Dr. Rhonda Phillips, AICP, CED, University of Florida

"This is the most comprehensive and best-written economic development text in the market. This would be a good text for a graduate level course and would work well with a one-semester teaching plan. . . The main strength of the book is the author's ability to summarize concepts, programs, and institutions and then draw from them issues, lessons, and challenges."  –John S. Strong, School of Business, College of William and Mary 

Economic Development Finance is a comprehensive and in-depth presentation of private, public, and community financial institutions, policies and methods for financing local and regional economic development projects. The treatment of policies and program models emphasizes their applications and impact, key design and management issues, and best practices. A separate section addresses critical management issues for development finance programs: program and product design, the lending and investment process, and capital management.  Case studies are included throughout the book to help readers develop their skills and apply policies and tools to real practice issues. A glossary of finance terms is also included.

Economic Development Finance provides a foundation for students and professionals in the technical aspects of business and real estate finance and surveys the full range of policies, program models, and financing tools used in economic development practice within the United States.   

Learn more economic development strategies on Karl F. Seidman's Web site at www.kfsconsulting.com
Part One Introduction
Chapter One Capital Availability and Economic Development
The Growing Field of Economic Development Finance  
The Purpose and Design of This Book  
The Role of Finance in the Economic Development Process  
Capital Availability and Capital Market Imperfections  
CAPITAL MARKET OPERATIONS, MARKET IMPERFECTIONS AND CAPITAL SUPPLY GAPS  
Capital Market Imperfections and Their Implications for Economic Development Finance  
A Framework for Expanding Capital Availability  
Part Two The Basics of Business Finance
Chapter Two Financing Business Enterprises: The Role of Equity and Debt
Defining Debt and Equity  
COMPARING EQUITY AND DEBT CAPITAL / KEY TERMS AND ISSUES IN EQUITY AND DEBT FINANCING / HYBRID FINANCING  
Financing and the Stages of Firm Development  
DATA ON SMALL BUSINESS CAPITAL SOURCES  
The Use of Equity and Debt in Hypothetical Firms  
Chapter Three An Introduction to Business Financial Statements
Accounting Concepts and Accrual Accounting  
Financial Statements: The Balance Sheet  
WHAT DO WE LEARN FROM THE BALANCE SHEET?  
Financial Statements: The Income Statement  
WHAT DO WE LEARN FROM THE INCOME STATEMENT?  
Connecting the Balance Sheet and Income Statement  
Chapter Four Analyzing Business Financial Statements
A Framework For Firm Evaluation  
ASSESSING ECONOMIC DEVELOPMENT BENEFITS / BUSINESS PLAN EVALUATION / ANALYZING FINANCIAL CONDITION AND PERFORMANCE / FINANCIAL PROJECTIONS  
Cash Flow Analysis  
CONSTRUCTING A CASH FLOW STATEMENT / CASH FLOW ANALYSIS FOR CRYSTAL CLEAR WINDOW COMPANY / DETERMINING DEBT SERVICE COVERAGE  
Ratio Analysis  
PROFITABILITY AND OPERATING RESULTS / SHORT TERM LIQUIDITY AND CASH NEEDS / CAPITAL STRUCTURE AND DEBT CAPACITY /  
Beyond Ratio Analysis  
The Final Test: Preparing and Evaluating Financial Projections  
Chapter Five Working Capital Finance
The Importance of Working Capital Finance  
THREE MEANINGS OF WORKING CAPITAL / BUSINESS USES OF
WORKING CAPITAL / PERMANENT AND CYCLICAL WORKING CAPITAL
 
Forms of Working Capital Financing  
LINE OF CREDIT / ACCOUNTS RECEIVABLE FINANCING / FACTORING / INVENTORY FINANCING / TERM LOAN  
Sources of Working Capital for Small Businesses  
Underwriting Issues in Working Capital Financing  
Underwriting Issues in Working Capital Financing
Case Study: Crystal Clear Window Company
Underwriting Issues in Working Capital Financing
Case Study: Crystal Clear Window Company
Case Study: Crystal Clear Window Company
 
Chapter Six Fixed Asset Financing
Fixed Assets and Business Operations  
Differences Between Fixed Asset and Working Capital Finance  
IMPLICATIONS FOR FIRMS / IMPLICATIONS FOR LENDERS  
Fixed Asset Debt Instruments  
TERM LOANS / MORTGAGE LOANS / LEASEHOLD IMPROVEMENT LOANS / LEASING /  
Sources of Fixed Asset Financing  
FIXED ASSET FINANCING GAPS  
Case Study: Phoenix Forge  
Chapter Seven Real Estate Finance
The Real Estate Development and Finance Process  
PREDEVELOPMENT PHASE / CONSTRUCTION AND DEVELOPMENT PHASE / OCCUPANCY AND MANAGEMENT PHASE / FINANCING PROCESS  
Real Estate Financial Statements  
DEVELOPMENT BUDGET / OPERATING PRO-FORMA / DETERMINING SUPPORTABLE DEBT AND EQUITY  
Real Estate Debt Instruments  
PRE-DEVELOPMENT FINANCING / CONSTRUCTION LOANS / PERMANENT MORTGAGE LOANS / MINI-PERM LOANS / BRIDGE LOANS / UNDERWRITING REAL ESTATE DEBT  
Sources of Real Estate Financing and Capital Availability
Problems
Sources of Real Estate Financing and Capital Availability
Problems
v
 
FINANCING GAPS FOR DEVELOPMENT PROJECTS  
Case Study: City Plaza  
Part Three Policies To Perfect Private Capital Markets
Chapter Eight Loan Guarantee Programs
Loan Guarantees and Capital Availability  
THE MYRIAD FORMS OF GUARANTEES / ADVANTAGES AND DISADVANTAGES OF GUARANTEES /  
Small Business Administration 7(a) Program  
State Loan Guarantee Programs  
Capital Access Programs  
Issues in the Design and Management of Guarantee Programs  
GUARANTEE PROGRAM POLICY LEVERS / PROGRAM CHALLENGES AND BEST PRACTICES  
Case Study: Massachusetts Emerging Technology Fund  
Chapter Nine Bank Regulations And Development Banks
The Critical Role of Banks in Economic Development Finance  
The Community Reinvestment Act  
HISTORY AND OVERVIEW OF THE COMMUNITY REINVESTMENT ACT / USING CRA TO EXPAND CAPITAL AVAILABILITY / CRA'S IMPACT ON BANK LENDING / NEW CHALLENGES FOR THE COMMUNITY REINVESTMENT ACT / COMMUNITY REINVESMENT AND THE INSURANCE INDUSTRY  
Bank Community Development Corporations  
BANK CDC REGULATIONS / BANK CDC EXPERIENCE  
Commercial Banks as Development Finance Institutions  
CHALLENGES TO CREATING AND OPERATING A COMMERCIAL BANK / SPECIAL OPERATING REQUIREMENTS /  
Case Study: Wilmington CRA Campaign  
Part Four Institutional Models for Economic Development Finance
Chapter Ten Revolving Loans Funds
The Revolving Loan Fund Model  
Revolving Loan Funds Characteristics and Performance  
RLF CHARACTERISTICS / RLF PERFORMANCE  
Design Issues for Revolving Loan Funds  
TARGETING POLICY / FINANCIAL POLICIES / CAPITAL POLICIES / UNDERWRITING CRITERIA / DEVELOPMENT SERVICES / RELATIONSHIP BUILDING POLICIES  
Management Challenges and Best Practices  
BEST PRACTICES IN RLF MANAGEMENT  
Chapter Eleven Venture Capital and Equity Investment Funds
The Private Venture Capital Industry  
FUNDRAISING / INVESTING / EXITING INVESTMENTS / IMPLICATIONS FOR DEVELOPMENT FINANCE  
The SBIC and SSBIC Programs  
State Government Venture Capital Policy  
Community Development Venture Capital  
INDUSTY PROFILE / INDUSTRY TRENDS AND CHALLENGES  
Addressing Venture Capital Challenges  
STRATEGY CHALLENGES / OPERATING CHALLENGES / CAPITALIZATION CHALLENGES  
Chapter Twelve Community-Based Financial Institutions
Community Development Loan Funds  
CDLF CHARACTERISTICS / CDLF FINANCING ROLES / CDLF OPERATING CHALLENGES AND NEEDS /  
Community Development Credit Unions  
CDCU CHARACTERISTICS / CDCU LENDING AND DEVELOPMENT ROLES / CDCU OPERATING CHALLENGES AND NEEDS  
Chapter Thirteen Microenterprise Finance
Three Models of Microenterprise Finance  
PEER GROUP LENDING / INDIVIDUAL LENDING MODEL / TRAINING-LED MODEL  
An Overview of the US Industry and Its Performance  
PROGRAM PERFORMANCE / PROGRAM OUTCOMES / THE ECONOMIC DEVELOPMENT ROLE OF MICROENTEPRISE DEVELOPMENT  
Design Issues and Management Challenges  
Best Practices in Microenterprise Finance Development  
MARKETING / TRAINING / TECHNICAL ASSISTANCE SERVICES  
Case Study: Lawrence Working Capital  
Part Five Federal and Municipal Government Finance Tools
Chapter Fourteen Federal Economic Development Programs
The Uses of Federal Economic Development Programs  
Small Business Development Administration  
PROGRAMS DELIVERED BY BANKS AND FINANCIAL INSTITUTIONS / PROGRAMS DELIVERED THROUGH SBA-APPROVED INTERMEDIARIES /  
Department of Housing and Urban Development  
COMMUNITY DEVELOPMENT BLOCK GRANTS / SECTION 108 PROGRAM / ECONOMIC DEVELOPMENT INITIATIVE  
Community Development Financial Institution (CDFI) Fund  
CDFI CERTIFICATION / CORE/INTEMEDIARY PROGRAM / SMALL AND EMERGING CDFI ASSISTANCE (SECA) PROGRAM / NATIVE AMERICAN CDFI TECHNICAL ASSISTANCE PROGRAM / NEW MARKET TAX CREDIT PROGRAM.  
Economic Development Administration  
PLANNING GRANTS / LOCAL TECHNICAL ASSISTANCE GRANTS / PUBLIC WORKS AND ECONOMIC DEVELOPMENT PROGRAM / ECONOMIC ADJUSTMENT ASSISTANCE PROGRAM / FUNDING PROCESS  
Health and Human Services  
Case Study: Financing an Inner-City Supermarket  
Chapter Fifteen Municipal Finance Tools
An Overview of Municipal Debt  
Economic Development Uses of Municipal Debt  
Industrial Development Bonds  
IDB CASE STUDY: NEW BOSTON SEAFOOD CENTER  
Tax-Increment Financing  
THE TAX INCREMENT FINANCING PROCESS / ECONOMIC DEVELOPMENT USES OF TIF / ISSUES IN TIF DEBT FINANCING /  
Assessment District Financing and Business Improvement Districts  
BUSINESS IMPROVEMENT DISTRICTS  
Case Study: Downtown Orlando TIF District  
Part Six Managing Development Finance Institutions
Chapter Sixteen Program Planning and Design
Defining Development Goals and Targeting Strategy  
GROWTH FUND EXAMPLE  
Assessing Demand  
GROWTH FUND EXAMPLE  
Analyzing Capital Market Supply and Identifying Financing Gaps  
GROWTH FUND SUPPLY ANALYSIS  
Implementation Needs and Resources  
IMPLEMENTATION NEEDS FOR THE GROWTH FUND  
Finalizing Program Strategy and Design  
Case Study: Expanding an Urban Microloan Program  
pter Seventeen Managing The Lending And Investment Process
The Investment Process and Key Management Principles  
PRINCIPLES FOR SOUND INVESTMENT MANAGEMENT  
Marketing and Project Identification  
MARKETING APPROACHES AND AUDIENCES / EFFECTIVE MARKETING PRACTICES  
Project Screening  
BEST PRACTICES FOR INVESTMENT SCREENING  
The Underwriting and Commitment Process  
BEST PRACTICES IN INVESTMENT-DECISION MAKING  
Investment Servicing and Monitoring  
SERVICING AND MONITORING OPTIONS / BEST PRACTICES FOR SERVICING AND MONITORING  
Case Study: Portland Development Commission Industrial Site Loan Fund  
Chapter Eighteen Raising And Managing Capital
Capital Management and Development Finance  
Pricing Loans and Investments  
Managing and Funding Losses  
Raising New Capital  
GRANTS AND EQUITY CAPITAL / DEBT SOURCES / MANAGING CAPITAL / ASSET SALES AND SECURITIZATION  
Financial Modeling of Development Finance Institutions  
COMPONENTS OF THE FINANCIAL MODEL / CREATING THE MODEL  
Case Study: Raising New Capital for the Manufacturer's Fund  
Part Seven Conclusions
Part Seven Conclusions
Part Seven Conclusions
Chapter Nineteen Economic Development Finance Practice and Its Future
Glossary
References
Key features
  • Presents a comprehensive treatment of the field include an introduction to the technical aspects of business and real estate finance.
  • A strong focus on both developing financial analysis skills and an understanding of policy, program design and management issues.
  • Case study assignments included for twelve chapters, based on actual programs and projects.
  • Six chapters on policies and program models summarize industry data, and the academic and practitioner literature that provide an overview of industry characteristics, impact and practices.
  • A glossary of finance terms is included. 

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ISBN: 9780761927099
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167.00 INR
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