IEDC: 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