Factors Influencing the Performance of U.S. Economic Development Administration Sponsored Revolving Loan Funds. Volume 1. Research Methodology and Findings

摘要

The study analyzes the performance of state and local revolving loan funds funded by the U.S. Economic Development Administration. The purpose of the study is to identify factors affecting the capacity of RLFs to promote economic development through the provision of financial assistance to businesses in their communities. The study results have been designed to be useful to organizations operating RLFs in making choices about RLF design and management. The study combines quantitative analysis of data on 1302 financings, 729 borrowers and 116 RLFs with in-depth case studies of 15 RLFs. The study provides strong evidence that the RLF Program is filling critical capital gaps in communities across the U.S. RLFs serve firms that are most likely to be shut out of the private capital market, provide the types of financing that are most difficult to obtain, and tend to finance firms with relatively high local employment impacts. The study does not find a relationship between some of the financial tools most frequently used by RLFs (particularly interest rate subsidies) and job creation and retention.