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Community Development

Masthead - Jacksonville Landing Partners
in community and economic development
Federal Reserve Bank of Atlanta
Volume 6, Number 4
Winter 1996
In This Issue

Doing the Undoable Deal
A step by step guide to piecing together the puzzle of community development lending is provided.

Why Banks Don't Make Every Loan You Think They Should Make
Why banks don't always make the loans some community development advocates think they should is discussed.

Why Loans Go Bad
A bank examiner reviews some of the reasons loans go bad, and offers suggestions to prevent problems before they arise.

The ABCs of Subsidy Providers


About this issue

Community Development Lending Requires a Structured Approach

By definition, virtually every community development loan or investment activity will have a social mission, such as providing affordable housing for low- and moderate-income persons, revitalizing distressed commercial or residential areas, or providing loans to small businesses. Social work has become an integral part of the development activity, and many new projects combine health care, day care, technical assistance or education programs as part of the project requirements. Most experts would argue that without these programs, community development projects will never meet their full potential. However, by its very nature community development lending and investment activity is financial, not social. Indeed, without a sharp pencil and attention to the financing details, very few projects will make it off the ground or sustain themselves over the long run.

While recognizing that the social aspects of community development activity are critical to a project's long-term success, this issue of Partners takes a look at the financial angle of community development activities. Beginning with information on how to make community development loans and investments, the newsletter also provides insight into why some loans are not made, and why other loans go bad. Hopefully, the discussion presented will encourage safe, sound and profitable community development lending.