Economic Development Finance Programs
The core objective of this analytical course is to explain the financial tools used to stimulate private sector investment that results in the creation of permanent, private sector jobs, increased productivity and improvement in the local tax base. Specifically, the course will review current debt, equity, grant and incentive-based financing programs that are accessible to practitioners both rural and urban. Moreover, course participants will learn how to calculate debt/service ratios, cash on cash rate of return, capitalization rates, underwriting ratios, debt coverage ratios and similar financial tools used to identify project feasibility. Course instructors will also spend time teaching how potential investors measure return on investment (ROI) how lenders evaluate risk. Participants will have an opportunity to work through multiple case studies in order to solidify their knowledge of the finance programs.
Course Highlights:
• Learn how to help small businesses adjust the imbalance between cost and revenues
• Explore the fundamentals of reducing risk of default and foreclosure
• Understand credit risks - matching sources and uses of funds to lower monthly payment and strengthen cash flow position
• Review maturity risks - providing collateral substitution with guarantee of collateral cushion
• Evaluate Community Development Block Grants, Rural Business Enterprise Grants and Public Infrastructure Grants
• Revolving Loan Funds, Community Development Financial Institutions
• New Markets Tax Credits, Historic Preservation Tax Credits, Tax Increment Financing
Sample Agenda
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Day 1 |
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8:30 - 9:00 am |
Registration |
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9:00 - 9:30 am |
Welcome and Introductions |
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9:30 am - 12:30 pm |
Economic Development Financing Case Study |
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12:30 - 2:00 pm |
Lunch on your own |
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2:00 - 4:30 pm |
Operating Business Financing Programs |
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4:30 pm |
Homework - Case Study |
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Day 2 |
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8:30 - 9:00 am |
Homework Review |
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9:00 - 10:00 am |
Revolving Loan Funds Case Study |
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10:00 am - 12:00 pm |
Financing Example: Business Loan Fund |
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12:00 - 1:00 pm |
Lunch on your own |
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1:00 - 3:00 pm |
Real Estate Financing |
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1:00 - 3:00 pm |
Public Financing Programs |
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4:00 pm |
Homework - Case Study |
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Day 3 |
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8:30 - 9:00 am |
Homework Review |
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9:00 - 10:30 am |
Taxes and Real Estate Development |
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10:30 am - 12:00 pm |
Low-Income Housing Tax Credits Rehabilitation Tax Credits (Historic Tax Credits) |
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12:00 - 1:30 pm |
Lunch on your own |
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1:30 - 2:30 pm |
Real Estate Development and New Markets Tax Credits |
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2:30 - 3:00 pm |
Pulling It All Together: Structuring |
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* Agenda subject to change |
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**Please note: In order to receive full IEDC certification credit for this course and a certificate indicating course completion, participants must stay until the final session on the last day. Please make travel plans accordingly. |
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