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Economic Development Finance Karl F. Seidman

Economic Development Finance By Karl F. Seidman

Economic Development Finance by Karl F. Seidman


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Summary

Offers a presentation of private, public, and community financial institutions, policies and methods for financing local and regional economic development projects. This book addresses critical management issues for development finance programs: program and product design, the lending and investment process, and capital management.

Economic Development Finance Summary

Economic Development Finance by Karl F. Seidman

"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 authors 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. Seidmans Web site at www.kfsconsulting.com

Economic Development Finance Reviews

"'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, 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"

About Karl F. Seidman

Karl F. Seidman is Senior Lecturer at MITs Department of Urban Studies and Planning and an experienced economic development practitioner. His MIT courses have completed over forty technical assistance projects for development finance organizations and prepared twelve economic development plans, including an award-winning revitalization plan for Bostons Hyde Park Commercial District. His professional experience includes the design, management and evaluation of economic development finance programs, the financing and supervision of complex development projects, and the preparation of economic development plans and strategies. Mr. Seidmans accomplishments include: Authoring laws that established two Massachusetts business finance agencies Building a $120 million state real estate finance and development authority Preparing over fifteen local and regional economic development plans; and Participating in the national evaluations of federal and foundation economic and community programs. Mr. Seidman holds a Masters degree in Public Policy from Harvards Kennedy School of Government and a Bachelors degree in political science from Amherst College. He is the author of over thirty-five consulting reports, articles in professional journals, a guide to urban commercial revitalization practice and the editor of a practitioners guide to defense conversion.

Table of Contents

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 / CRAS 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 Manufacturers Fund Part Seven Conclusions Part Seven Conclusions Part Seven Conclusions Chapter Nineteen Economic Development Finance Practice and Its Future Glossary References

Additional information

GOR013928767
9780761927099
0761927093
Economic Development Finance by Karl F. Seidman
Used - Very Good
Hardback
SAGE Publications Inc
2004-08-31
520
N/A
Book picture is for illustrative purposes only, actual binding, cover or edition may vary.
This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in very good condition, but if you are not entirely satisfied please get in touch with us

Customer Reviews - Economic Development Finance