SUMMER 2006

Community Development Venture Capital: Producing Results for Entrepreneurs, Investors and Communities

Market Value Analysis: Understanding Where and How to Invest Limited Resources

Main Street Arkansas Cities Gain Jobs in 2005

Nonprofits Look to Business for Funding Model

Dates to Remember

Have You Heard

Spanning the Region

Calendar

Resources

A Closer Look
This supplement to Bridges takes topics from previous and current issues of the newsletter and examines them from the perspective of a particular area or community. This issue focuses on the Non-profit Housing Alliance in Louisville, Ky. Members are nonprofit, affordable housing developers who come together to learn from each other and to gain access to training and financial resources.

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Community Development Venture Capital

Producing Results for Entrepreneurs, Investors and Communities

By Amy Simpkins
Community Affairs Specialist
Federal Reserve Bank of St. Louis

Access to capital, particularly equity capital, is a barrier faced by many entrepreneurs looking to start and expand businesses in low-income and rural areas. However, these are the very areas where innovation and business expansion may have a significant impact on the health and vitality of local economies.

Community development venture capital (CDVC) is an equity financing tool that benefits both entrepreneurs and communities. Sometimes called “double bottom line” investing, CDVC funds invest in businesses in low-income areas, adding equity, entrepreneurial experience and ingenuity to underserved markets.

In the following interview, Kerwin Tesdell, president of the Community Development Venture Capital Alliance (CDVCA), answers questions about the CDVC industry and the power such equity investment can have on many local economies that need social and financial returns....FULL STORY