First this course will give an introduction to the role of financing in the economic development process, then the course will provides a foundation in how firms and development projects are financed and the interpretation and analysis of business financial statements to understand capital needs and evaluate the ability to support financing. The third part of this course considers how capital market imperfections result in financing gaps and focuses on the policy and institutional models that exist to address these capital gaps and stimulate private investment in community and economic development. 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.

This course focuses on financing tools and program models to support local economic development. It includes an overview of private capital markets and financing sources to understand capital market imperfections that constrain economic development; business accounting; financial statement analysis; federal economic development programs; and public finance tools. Program models covered include revolving loan funds, guarantee programs, venture capital funds, bank holding companies, community development loan funds and credit unions, micro enterprise funds, and the use of the Community Reinvestment Act to leverage bank financing.

Karl Seidman is a senior lecturee in Economic Development, Department of Urban Studies and Planning, MIT. His current research inicluds neighborhood rebuilding in New Orleans, and how economic development organizations are responding to climate change and the green economy. In 2010, professor Karl Seidman received National Student Project Award at 2010 American Institute of Certified Planners.