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Economic Development

News &Vıews
Published by the Federal Reserve Bank of Chicago Consumer and Community Affairs Division

Volume 5 Number 3
December 1999
Inside this Issue:

$112 Million in 1999
CDFI Fund Awards
USDA Investing in Rural
Illinois
Microbusiness Loan Fund
in Grand Rapids
Y2K Action Loan Program
Native American Lending
Study
Brownfields are Good
Investments
CRA Agreements Working
Individual Development
Accounts
From Our Research
Department
Small Business and the
Year 2000
Around the District

Introducing a New Web
Resource
We are pleased to announce a new web site that
offers a wealth of information to assist researchers,
community development professionals, non-profit
organizations, financial institutions, and government agencies.
It’s called the Consumer and Economic
Development Research and Information
Center (CEDRIC). Its principal mission is
to foster research related to consumer
and economic development issues such
as consumer and small business financial behavior, access to credit, affordable housing, and community development and reinvestment. Created and
maintained by the Federal Reserve
Bank of Chicago, CEDRIC has a
research repository that includes
abstracts of research studies as well as
full text articles, reports, working papers and
other studies generated by Federal Reserve
researchers and analysts as well as academicians, government
agencies, and non-profit organizations. CEDRIC also provides a subject listing describing research included in the repository; announcements of upcoming events; a collection of valuable data resources; a glossary of community development terms; and links to CEDRIC partners.
CEDRIC’s repository subject listings are highlighted below:
■ Community and Economic Development – investment/development, urban stability,
empowerment/enterprise zones, rural/agricultural issues, community development centers, and inner
city rejuvenation;

Business Access to Capital
and Credit Symposium
continued on page 2

New Web Resource continued from page 1
■ Consumer Financial Behavior –
access to credit, consumer
wealth, mortgage delinquencies,
mortgage defaults, credit delinquencies, credit defaults, bankruptcy, culture and credit,
income distribution, and alternative financial services;
■ Housing – mortgage lending,
location desires, appraisal
process, homeownership patterns, private mortgage insurance, and housing search
process;
■ Indian Reservation Development – affordable housing, community investment, legal considerations, access to credit, and
banking services;
■ Institution Behavior – branch
banking, credit scoring, fair lending, redlining, affordable/lowincome housing, profitability
and regulations, homeowner
insurance, pricing of credit, geographic patterns, financing alternatives, CRA, ECOA & FHA activities, GSE & FHA activities,
secondary market underwriting,
and minority-owned institutions;
■ Small Business –
entrepreneurship, failures,
minority/women issues, lending,
financing, and development.
CEDRIC is a comprehensive
research tool designed to help
economists, analysts and other
professionals identify consumer
and economic development
related research. It includes a
Glossary of Community Development
Terms, covering a wide array of
relevant terms and concepts. For
terminology beyond the scope of
this web page, the user is directed to a variety of other online
glossaries, including a Glossary of

Consumer Credit Terms and a Glossary of Financial Regulators and
Institutions. In addition, CEDRIC
highlights high-quality, reliable
online data sources. Drawing
upon the data collection and
analysis expertise of the Chicago
Fed’s Consumer Issues Research
Unit, we have provided a brief
description about the numerous
electronic databases and information systems, encompassing
the fields of statistics, econometrics, economics and finance.
Two search options have been
developed to provide CEDRIC
users with an efficient way to
retrieve relevant information.
One can conduct a quick search
by clicking on one of the six
major subject areas located on
the Repository Subject Listing
page to view all of the documents
related to that subject. Similarly,
one can perform a focused
search by specifying keyword(s),
author(s), and/or title information.
CEDRIC also serves as a forum
for sharing relevant information
about unique projects, initiatives,
and events taking place across
the nation. Currently, CEDRIC
features an academic conference, Business Access to Capital
and Credit, hosted by the Community Affairs Divisions of the
Federal Reserve System on
March 8-9, 1999 in Arlington,
Virginia. CEDRIC offers easy
access to the complete conference proceedings, which includes papers and summaries of
the papers presented by distinguished economists and scholars
from across the country. These
proceedings are designed to further the understanding of small
business lending and credit
issues among scholars, practi-

tioners, and policymakers. Furthermore, the Events page
announces relevant upcoming
conferences, seminars, forums,
and workshops taking place
across the country.
Finally, CEDRIC users are
encouraged to contribute to the
site’s database by submitting relevant publications, articles,
abstracts, working papers and
other studies. By utilizing a userfriendly Submission Procedure
interface, researchers and analysts have the opportunity to
share valuable information with
CEDRIC’s ever-expanding audience and, thus, foster future
research on the topics related to
consumer and economic development. To date, CEDRIC has
established partnerships with
over 60 organizations, including
academic journals, non-profit
organizations, professional associations and government agencies. You can learn more about
CEDRIC’s partners by visiting the
Partner Listing page, which

includes contact information as
well as website links. ■
Visit CEDRIC located on the Federal
Reserve Bank of Chicago’s public
website at www.frbchi.org by following the ‘Community Development
Research Center’ link listed under
‘Resources.’ For further information,
please contact CEDRIC’s coordinator
at cedric@chi.frb.org.

Communications
Advisors: Alicia Williams
Editor: Harry Pestine

Economic Development News & Views welcomes story ideas, suggestions, and letters from subscribers, lenders, community organizations, and economic development professionals. If you wish to
subscribe or to submit comments, call 312/322-8232 or write to:
Economic Development News & Views
Federal Reserve Bank of Chicago
Consumer & Community Affairs Division
230 S. LaSalle Street
Chicago, Illinois 60604-1413.
The material in News & Views does not necessarily represent
the official policy or views of the Board of Governors of the
Federal Reserve System or the Federal Reserve Bank of Chicago.
Economic Development News & Views – ISSN: #1083-1657

2

Finance

$112 Million in 1999 CDFI Fund Awards
U.S. Treasury Secretary Lawrence Summers has announced
the recipients of the
Community Development Financial
Institutions (CDFI)
Fund’s 1999 awards.

and provision of financial services in distressed communities.
The BEA Program supports the
community reinvestment efforts
of these financial institutions.

Totaling $112 million, the
awards are given to banks, thrifts
and community development
financial institutions through
the CDFI Fund’s Bank Enterprise Award Program and the
CDFI Program’s Core, Intermediary and Technical Assistance
Components.

The CDFI Fund selected 102
insured depository institutions
to receive a total of $31,494,652
under the 1999 Bank Enterprise
Award Program. The average
award per recipient was
$308,526.

“The CDFI Fund is helping to
rebuild communities across the
country,” said Secretary Summers. “By creating partnerships
between institutions and lowincome communities, CDFI
Fund award recipients are helping to make financial systems
available to all Americans.”
“The Fund’s $112 million in
1999 awards represents a 32%
increase over last year,” added
Ellen Lazar, Director of the
CDFI Fund.

Highlights of 1999 Bank
Enterprise Award Program

The following financial institutions in the Federal Reserve
Bank of Chicago’s Seventh District received awards:
Allstate Federal Savings Bank
Northbrook, IL
$22,000
Bank Leumi
Chicago, IL

$143,150

Bank of America NT & SA
Chicago, IL
$328,422
Cole Taylor Bank
Skokie, IL

$356,393

Community Savings Bank
Chicago, IL
$33,000

“Since 1996, the CDFI Fund has
provided more than $300 million to promote community and
economic development and
encourage private sector investment to underserved markets,”
she said.

First National Bank of Morton Grove
Morton Grove, IL
$11,000

The CDFI Fund’s mission is to
promote local growth and access
to capital by directly investing in
and supporting CDFIs and by
expanding traditional financial
institutions’ lending, investment,
and services within underserved
markets.

Mid-City National Bank of Chicago
Chicago, IL
$24,025

The Bank Enterprise Award
(BEA) Program provides incentives for traditional financial
institutions (regulated banks
and thrifts) to invest in CDFIs
and to increase their lending

International Bank of Chicago
Chicago, IL
$509,495
Marquette National Bank
Chicago, IL
$157,000

Highlights of 1999 CDFI
Program Awards: Core &
Intermediary Components

Highlights of 1999 CDFI
Program Awards: Technical
Assistance Component

The CDFI Fund selected 66 community development financial
institutions to receive a total of
$68,165,185 in financial and
technical assistance under its
CDFI Program 1999 Core Component. This funding includes
the following types and amounts
of assistance:
Capital Grants
$44,743,500

The CDFI Fund selected 88
applicants to receive awards
totaling $4,013,620 under its
CDFI Program 1999 Technical
Assistance Component. These
awards are in the form of grants.
The average grant size is approximately $45,000. The aim of
these awards is to enhance the
capacity of the recipient to serve
its target market. The grants provided under the Technical Assistance Component may provide
funds for staff or management
training, the acquisition of technology to improve financial
management or internal operations, and the use of outside
experts to build organizational
capacity in specific areas. The 1999
awards represented the second
annual round of funding of the
Technical Assistance Component.

Equity Investments

$14,035,185

Loans

$8,020,000

Technical Assistance

$1,366,500

The Fund also provided
$8,150,000 in financial assistance
to four intermediary CDFIs
under the Fund’s 1999 Intermediary Component of the CDFI
Program. The Intermediary
Component provides support to
those CDFIs that primarily
finance and build the capacity of
other CDFIs.
These awards represent the
fourth round of funding of the
Core Component and the third
round of funding of the Intermediary Component.
CDFIs in the Federal Reserve
Bank of Chicago’s Seventh District received the following
awards:
Community Investment Corporation
Chicago, IL
$2,000,000

Northern Trust Company
Chicago, IL
$1,286,460

Indianapolis Neighborhood
Housing Services, Inc.
Indianapolis, IN
$1,000,000

South Shore Bank of Chicago
Chicago, IL
$1,225,755

Legacy Bancorp, Inc.
Milwaukee, WI

Standard Federal Bank
Troy, MI
$1,122,886

Michigan Housing Trust Fund
Lansing, MI
$520,000

Union Federal Savings Bank of
Indianapolis
Indianapolis, IN
$115,530

Near Eastside Community Federal
Credit Union
Indianapolis, IN
$758,000

West Town Savings Bank
Cicero, IL
$95,000

Neighborhood and Family
Investment Fund
Harvey, IL
$300,000

The following applicants in the
Federal Reserve Bank of Chicago’s
Seventh District received awards
for technical assistance:
Illinois Ventures for Community
Action (IVCA)
Springfield, IL
$27,250
Lafayette Neighborhood Housing
Services, Inc.
Lafayette, IN
$40,000
Sable Bancshares, Inc.
Chicago, IL

$21,250

Wisconsin Women’ Business
Initiative Corp.
Milwaukee, WI
$40,000

$1,500,000
For additional information on the
various CDFI Fund programs, contact the Consumer and Community
Affairs Section of the Federal Reserve
Bank of Chicago at 312/322-8232.

3

USDA Investing in Rural Illinois
Utilities Service, Rural Housing
Service and Rural BusinessCooperatives Services.
The Rural Development office’s
federal loan programs are
designed to strengthen rural

housing needs. In addition, Rural Development’s Cooperative
Development Specialist is available upon request to help
groups or individuals with questions about cooperatives.

In 1999, Rural Development
in Illinois provided more than
$214 million of assistance to
rural residents

Community Programs
■ Over $34.3 million was
loaned to rural communities
for water and waste projects
Wallace D. Furrow
Retired USDA State Director

■ Over $5.6 million was funded
for community facility projects in 17 rural communities

The U.S. Department of
Agriculture (USDA) invested
$214,226,440 in loans and
grants in rural Illinois during
fiscal year 1999.
“This has been an exciting year
for the USDA’s Rural Development office, its staff and customers,” said Wallace D. Furrow,
USDA state director for Illinois.
“We have successfully provided
program assistance impacting
the lives of thousands of rural
residents, continued to streamline our organizational structure, and with the assistance of
local partners, developed a blueprint for future activities.”
The mission of the USDA’s Rural
Development program is to
enhance the ability of rural people to create, build and sustain
ventures and communities by
building partnerships and investing financial and technical
resources in areas of greatest
need. To accomplish this mission, the USDA administers various programs throughout the
country at the state level. Rural
Development includes the Rural

Business & Industry
■ Over $18.8 million was
loaned to rural businesses
in Illinois
businesses, maintain and create
rural employment, finance and
improve rural housing, and
develop community facilities.
Direct and/or guaranteed loans
are available for housing, electric
energy and telecommunications
needs, waste and water systems,
rural businesses, and community
facilities. A limited amount of
grant funds are also available for
some targeted programs.
These programs have an existing
loan portfolio of approximately
$751 million in Illinois. The programs are delivered through 18
local and nine area office locations as well as the state office in
Champaign.
Rural Development works to
provide more than just financial
assistance. It also works with
many agencies and groups to
address business, community or

Rural Business-Cooperative
Service
The Rural Development program
includes the Rural BusinessCooperative Services (RBCS),
which works to promote a
dynamic business environment
in rural America. RBCS works in
partnership with the private sector and community-based organizations to provide financial
assistance and business planning. It also provides technical
assistance to rural businesses and
cooperatives, conducts research
into rural economic issues, and
provides cooperative education
material to the public.
RBCS Business Programs help
fund projects that create or preserve quality jobs and/or promote a clean rural environment.
The financial resources of RBCS
are often leveraged with those of
other public and private credit
source lenders to meet business

■ 541 jobs were saved or created

Rural Housing
■ Over $154.7 million in loan
funds and guarantees were provided by Rural Development in
Illinois to meet rural Illinois’
growing housing needs
■ 2,878 rural families were
assisted with the purchase or
repair of their homes

and credit needs in under-served
areas. Participants in these programs may include individuals,
corporations, partnerships,
cooperatives, public bodies, nonprofit corporations, and private
companies.
■ Business & Industrial Guaranteed Loans are used to improve,
develop, or finance business,
industry, and employment, and

continued on page 5
4

USDA Investing in Rural Illinois
improve the economic and environmental climate in rural communities, including pollution
abatement and control. This
objective is achieved by bolstering the existing private credit
structure with guarantees of quality loans which will provide lasting community benefits. This
type of assistance is available only
to businesses located outside the
boundary of any city of 50,000 or
more and its immediately adjacent urbanized area.
■ Intermediary Relending Program finances business facilities
and community development
projects outside the boundary of
any city of 25,000 or more. This
is achieved through loans made
by Rural Development to intermediaries that provide loans to
ultimate recipients for business
facilities and community development in rural areas.
■ Rural Cooperative Development Grants are made available
to nonprofit corporations and
institutions of higher learning to
assist with the startup, expansion
or operational improvement of a
cooperative; or to enhance
processes that can add value to
on-farm production.
■ Rural Business Enterprise
Grants can assist public bodies
and nonprofit corporations in
financing and facilitating development of small and emerging
private business enterprises outside the boundary of any city of
50,000 or more and its immediately adjacent urbanized area.
■ Rural Economic Development
Loans and Grants are provided at

continued from page 4

zero interest to rural electric and
telephone borrowers to promote
rural economic development
and job creation projects.
■ Cooperative Development
Technical Assistance is available
to help rural residents form
new cooperative businesses
and improve the operation
of existing cooperatives.
■ Community Facilities Loans
are used to construct, enlarge,
extend, or otherwise improve

Community Facility Program
The Community Facility Program is providing needed public
facilities in rural Illinois. In 1999,
Rural Development funded 17
projects totaling $5,637,500 in
loans, grants and guarantees.
This year’s projects included construction of day care facilities,
library improvements, fire stations, mental health facilities,
hospital improvements, a health
clinic, senior citizens facilities,
and others.

Rural Development works
to provide more than just
financial assistance.
community facilities providing
essential services in rural areas
and towns with a population of
20,000 or less. The funds are
available to public entities such
as municipalities, counties, special-purpose districts, Indian
tribes, and corporations not
operated for profit for such purposes as health care, fire and rescue, community centers, assisted
living projects, day care and other purposes.
■ Guaranteed Community Facility
Loans are available to finance the
same types of facilities as the
direct loan program.
■ Community Facility Grants are
available for small projects in
low-income areas to make essential facilities affordable.

Rural Business Enterprise
Grant Program
The Rural Business Enterprise
Grant (RBEG) Program assists
small and emerging businesses by
providing funding for startup costs.
In 1999, ten applicants received
$657,000 in grant funds. These
funds were designated to provide
infrastructure, technical assistance
or revolving loans to benefit private
business enterprises.
Business and Industry Loan
Program
In 1999, Illinois was one of the
leading states in the number of
Business and Industry (B&I)
Guaranteed Loans granted in the
nation. Designed to help provide
a positive environment for economic growth and stability for
rural areas, the B&I Program in

Illinois totaled $18,834,000,
resulting in 541 jobs being created or saved.
A variety of projects were funded
in FY 1999, including gas stations/convenience stores,
machine shops, farm implement
dealers, manufacturing plants, a
food distribution center and others. Funds can be used to finance
real estate, equipment or working capital.
Cooperative Development
Rural Development, through an
experienced Cooperative Development Specialist, helps people
interested in forming new cooperatives by providing a wide
range of assistance such as identifying potential cooperative functions and best business practices,
assisting with organization and
business plans and providing
training for directors. In 1999,
technical assistance also was provided to existing cooperatives to
overcome problems, analyze
merger possibilities or new functions, help with planning, and
provide training.
Cooperatives in rural areas may
use guaranteed loans to invest in
machinery and equipment, real
estate and working capital. ■
For additional information on Rural
Development programs and the U.S.
Department of Agriculture, contact
the Illinois District office at
217/398-5412 ext. 201.

5

MicroBusiness Loan Fund Launched in Grand Rapids
While it has yet to lend its first
dollar, Kent Area MicroBusiness
Loan Services is already being
labeled a success. The program’s
successful launch is due to the
broad range of groups that
helped to define the scope and
depth of the program and the
thorough process used to define
the program’s goal.

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The successful launch of the program is the culmination of 18
months of work by a strong,

Area banks
Business service organizations
Professional service providers
Federal regulatory agencies
Supportive community
New access to capital for microbusiness in
Grand Rapids, Michigan

The process began with focus
groups, orchestrated by the Federal Deposit Insurance Corporation (FDIC) in tandem with the
Michigan Small Business Development Center at Grand Valley
State University. These focus
groups provided an opportunity
for a community-wide discussion
related to “gaps” in small business lending. Financial institutions, small business owners, and
business service organizations all
participated in the focus groups.
They quickly honed in on the
gap commonly found in many
communities nationwide… access
to capital for microbusinesses.
The group was unanimous in citing the critical need to provide
small, startup companies with better access to working capital and
financing for inventory and small
equipment. Financing for service
industries and the need to support some of the fastest-growing
sectors of small businesses —

6

women and minorities — were
key points of discussion. The
group also felt, however, that
loans had to be accompanied by
pre-credit business development
counseling and post-credit
management assistance.

inclusive, 30-member committee.
The following factors helped
ensure the program’s successful
launch:
■ The target audience was identified — startup and emerging
Kent County area businesses
unable to access conventional
bank financing due to lack of
collateral, lack of business experience, or blemished credit.
■ The Federal Reserve provided
a wealth of demographic information about current lending in
the Kent County community.
■ Successful existing microloan
programs were visited and studied.
■ A local accounting firm and a
law firm, along with the FDIC
and Federal Reserve, provided
external assistance.

■ The organization structure
was determined — a non-profit
organization, with its own governing board and loan committee,
which represented the business
community at large and would
bring all banks and service
providers to a common table.
■ Organizational “membership”
was defined — organizations, not
individuals, who support the purpose of the program.
■ Funding sources were targeted
— community block grant funds
were obtained, area banks contributed funds, and local philanthropic and business foundation
proposals were written and submitted.
■ Personnel needs were defined
— an executive director with a
strong business/lending background, coupled with experience
in working with difficult-to-service constituents, was hired.
■ An operational site was selected — one that offered easy
access for clients and space for
client counseling, to be used by
all business service providers.
The site also fit within budget
constraints, was geographically
connected to the business community at large, and afforded
opportunity for program growth.
The success of the program will
ultimately be determined, of
course, by the history of loan
repayment. But beyond that, the
longer-term success of the program will be equally dependent
on several other factors:

■ Successful marketing of the
program by its own membership
■ The level of technical service
provided
■ The development and implementation of loan policies and
procedures
■ Continued collaboration as
the program moves from its
development process to its operational stage.
Thirty partners have developed
this program. They have broken
down historical barriers and
forged a true community partnership in order to do what is
needed: serve the small business
owner. The program’s founders
are confident it’s an equation
that will add up to making
microbusinesses more viable
through access to capital. ■
For information regarding the Kent
Area MicroBusiness Loan Services,
contact Carol Lopucki, Interim
Chair and Director, MI-SBDC at
Grand Valley State University.
616/771-6693.

Century Date Change Y2K Action Loan Program
Available Through December 31, 2000
Earlier this year, President Clinton signed into law the “Small
Business Year 2000 Readiness
Act” (Public Law 106.8). In signing the bill, the President stated,
“The legislation I am signing
today will help ensure the
Nation’s small businesses have
access to the capital they need to
be ‘Y2K-OK’ in the Year 2000.”
This law requires that the U.S.
Small Business Administration
(SBA)“…provide for a loan guaranty program to address the Year
2000 computer problems of
small business concerns…”

Furthermore, the Program provides that any reasonable doubts
regarding a loan applicant’s ability to repay the debt should be
resolved in favor of the applicant.

The Small Business Year 2000
Readiness Act provides maximum flexibility in establishing
terms and conditions for a special loan program. These loans
may be structured in a manner
that enhances the ability of the
borrower to repay the debt. For
example, if appropriate to facilitate repayment, the program
allows a one-year moratorium on
principal repayments.

■ The purchase of consulting
and other third party services,
and related expenses; and

Use of Proceeds
Loan proceeds can be used only
to address the Year 2000 computer problems including:
■ The repair and acquisition of
information technology systems;
■ The purchase and repair of
software;

■ After January 1, 2000, to provide relief from a substantial economic injury incurred as a direct
result of the Year 2000 computer
problems or as an indirect result
caused by any other entity such
as a service provider or supplier,
if such economic injury is not

compensated for by insurance or
otherwise.
Refinancing of debt is permitted on loans approved after
October 1, 1998, where loan
proceeds were used to address
Y2K problems. SBA field offices
are encouraged to work with
lenders to restructure such
loans if it provides a benefit to
the borrower. In cases where
such loans cannot be restructured, SBA should permit refinancing through the Y2K program when the vast majority of
loan proceeds were used to correct Y2K problems and when
the borrower will receive a substantial benefit from such
financing.
Guaranty
The SBA can provide up to a 90
percent guarantee on Y2K loans
of $100,000 or less and up to 85
percent on Y2K loans of over
$100,000. If the application is
processed through SBA Express,

the maximum guarantee is 50
percent. The maximum SBA
exposure in dollars for a Y2K
loan is $750,000. If the borrower
has an existing SBA guaranteed
or direct loan(s), the maximum
SBA exposure is $1,000,000.
Getting Started
Y2K loans are made by authorized SBA lenders and guaranteed by the SBA. Contact your
local lender or your local SBA
office for information on how to
apply for a Y2K loan. ■
For more information, or any questions
or comments regarding this program
should be directed to Greg Diercks, at
gregory.diercks@sba.gov
The SBA has offices located throughout the United States. For one nearest
you, call the SBA Answer Desk at
800-U-ASK-SBA. For the hearing
impaired, the TDD number is
703/344-6640.

Native American Lending Study and Action Plan
The Community Development
Financial Institutions (CDFI) is
conducting a study on lending
and investment practices on Indian reservations and other lands
held in trust by the United
States. Input is being solicited
through a series of regional

workshops throughout the
Untied States from tribal leaders,
economic and financial planners, bankers, federal agencies,
secondary market organizations
and state agencies. The participants in these workshops are
identifying barriers to lending

and investment on Native American lands; describing the impacts
of the barriers; and developing
strategies and action plans for
eliminating the barriers. The
findings will assist the CDFI
Fund in developing a report to
the President and Congress that

will include policy; statutory
and regulatory recommendations designed to increase
private investments on
Native American lands.
For information, call the CDFI
Fund at 202/622-8662.

7

New Study Shows Brownfields Are A Good Investment!
A recently released
study quantifies
the public return
on investment in
brownfields redevelopment and
demonstrates the potential feasibility and opportunity for
many communities nationwide.
“For every dollar of public money, there is $2.48 of private investment in these sites. This is an
outstanding return.” Said EPA
Administrator Carol Browner.
“This study puts the facts on
paper. Brownfields are good for
the environment, the economy,
and children’s future.”
Browner’s comments came during her presentation at the
National Association of Local
Government Environmental Officials’ Second Annual Conference
on Showcase Communities.
There are at least 600,000 brownfields sites – former industrial
sites with real or perceived contamination – in the United States,
and limited funds available for
their redevelopment.
The study is the largest sample
ever analyzed and shows the power of successful brownfields redevelopment in disadvantaged
communities. Completed by the
Council for Urban Economic
Development (CUED), the study
details survey findings from 107
completed brownfield redevelopment projects across the United
States that involved public participation.
Issues examined include costs
and funding sources for remediation, brownfield area demographics, type of reuse, and the
8

number of jobs created. For
example, within these 107 sites
there were 8,300 construction
jobs and 2,200 permanent jobs
(to date) created.
The study findings will help to
dispel misperceptions about
redevelopment of such sites and
allow practitioners to establish
benchmarks for evaluating
future projects.
Key findings include:
■ Median cost to the public
sector per job created --$14,003.
■ Median amount of private
funds leveraged per public
dollar spent -$2.48.
■ Remediation funding sources:
public funding – 63 percent,
private sector – 21 percent,
joint public/private funds –
16 percent
■ Median remediation cost per
acre -$56,945; cost per square
foot -$4.46
■ Overall percentage of
remediation to total redevelopment costs for all 107
projects - 8 percent
■ Demographics for residents within one-mile
radius of the brownfields
sites – 35 percent minority vs. the national average
of 24 percent; 25 percent
below poverty level – twice the
national average at 12.6 percent
After years with little more than
anecdotal evidence to guide decision-making, communities now
can look to this study for the costs
and results of brownfields reuse.

The sites examined were
throughout the United States
and ranged in size. The majority
of the sites were less than 10
acres (81 sites) and were redeveloped by businesses. Public sector
agencies and economic development organizations redeveloped
only 20 percent. ■
The report, titled “Brownfields Redevelopment: Performance Evaluation” was prepared by CUED under
a cooperative agreement with the
U.S. Environmental Protection
Agency. It is available from CUED
by calling Cynthia Murray at
202/223-4735, sending a fax
request to 202/223-4745, e-mailing
cued@ urbandevelopment.com, or
visiting CUED’s Web site at
www.cued.org.

The Council for Urban Economic
Development (CUED), founded in
1967, is a leading full-service economic development membership association, serving more than 2,400 economic development professionals.
CUED provides information to members who build local economies
through tools used to create, attract,
and retain jobs. CUED also manages
the National Association of Installation Developers (NAID) and the
Association of University Related
Research Parks (AURRP). NAID
brings together public and private
sector professionals involved with the
redevelopment of closing military
bases. AURRP promotes the development of research/science parks and
technology incubators in order to
enhance technology-based economic
development.

Your Views

CRA Agreement is Working for Low-Income People
of benefits and more welfare
recipients move into the labor
force, low-income people
increasingly need to be informed
about money management and
opportunities to use traditional
bank checking accounts.

By Dory Rand,
Attorney at Law
National Center for Poverty Law
Dory Rand is a staff attorney with
the Chicago-based National Center
on Poverty Law and editor-in-chief of
the Center's monthly newsletter. She is
a member of the Chicago CRA Coalition steering committee and chair of
its Financial Services Task Force. She
helped to negotiate and implement
recent CRA agreements with various
financial institutions. She also
helped to forge an innovative financial education collaboration between
a financial institution and an
employment and training center.

Alternative Banking Pilot
Program
These needs were addressed
when the Chicago CRA Coalition
negotiated a $4.1 billion CRA
agreement with First Chicago NBD

…program has been very successful in reaching those who have
never had a bank account…
in 1998 pending its merger with
Bank One Corporation.
The financial services

Banks and community groups
can use the Community Reinvestment Act (CRA) to bring lowincome people into the financial
mainstream by expanding access
to financial services and increasing financial literacy education.
Low-income people are less likely
than those with moderate or
high incomes to have any transactions with traditional financial
institutions. Thus, they are more
likely to resort to check-cashing
outlets. Conducting business
through such non-traditional
outlets often entails high costs
and minimal consumer protection. As governments move
toward more electronic transfer

Chicago- now Bank One- made
changes in the qualifications for
and cost of opening a basic
checking account at its Englewood, North Lawndale and
Logan Square branches. If checking account applicants are not
eligible under the bank’s standard credit-scoring requirements, they may be eligible
under more flexible AB criteria.
Those with past-due debts or
long-term delinquencies in their
credit record may still qualify.

aspects of the
First Chicago CRA agreement
include an innovative Alternative
Banking pilot program in three
Chicago low- and moderateincome (LMI) communities to
promote financial literacy and
expand access to low-cost
checking accounts.
As part of the Alternative Banking (AB) pilot program, First

Instead of
requiring $100 to
open an account, the
bank requires only $10. Also,
those with no previous credit
history, who would have been
denied the opportunity to open
an account under the bank’s
usual policies, can now open
an account.
The bank adjusted its funds availability policy slightly to protect
the bank against additional risk.
Customers who maintain an AB
account in good standing for 12
months are eligible for conver-

sion to a standard account with
faster access to funds. The term
Alternative Banking is used internally at the bank to monitor the
pilot program, but it is not used
in advertising or with customers.
The AB program has been very
successful in reaching those who
have never had a bank account.
Since its start in the spring of
1999, the AB program has
opened a total of 573 accounts,
including 342 checking accounts
and 231 savings accounts. As of
October 21, 1999, there were 483
active accounts in the AB program, including 280 checking
accounts and 203 savings
accounts. Over three-quarters of
the new accounts were opened
for people with no credit history.
Encouraged by the success of the
AB program in these branches
and the positive reaction of the
participating branch managers,
Bank One has expanded the AB
program in November of this
year to two more LMI Chicago
branches - one in Ravenswood
and one in Rogers Park. Managers at the new pilot branches
are eager to offer AB accounts
to their customers. According
to Bank One, about half of the
walk-in customers in these
branches are people who have
never had a bank account.
The Chicago CRA Coalition and
Bank One continue to meet periodically to review the progress of
the AB program. ■
For more information, contact the
Chicago CRA Coalition’s Financial
Services Task Force chair, Dory Rand,
at the National Center for Poverty Law
312/263-3830, ext. 228.

9

Your Views

Individual Development Accounts:
Building Assets, Wealth, and Opportunity

By Connie E. Evans,
President
Women’s-Self Employment Project

Connie E. Evans is president of the
Women’s Self-Employment Project,
Chicago, the largest micro-enterprise
program targeting low-income urban
women in the country. Evans has
more than 20 years experience developing and implementing programs to
further economic development, health
and social change in low-income
communities. Her efforts have been
recognized with numerous awards,
including the first Presidential
Award for Excellence in Microenterprise: Poverty Alleviation, the Sara
Lee Foundation Spirit Award, the
Amoco Foundation Leader in Economic Development Award, and
Chicago Magazine 1996 Chicagoan
of the Year. She was recently elected as
a Class B director of the Federal
Reserve Bank of Chicago. Class B
directors represent the public and
must be non-bankers. Her three-year
term begins on January 1, 2000.
The accumulation of assets is the
gateway to opportunity for the
poor. This may sound improbable, but it is one of those crazy
ideas whose time has come.

Individual Development
Accounts (IDAs) are savings and
investment accounts earmarked
for high return investments in
business development, home
ownership, and education. IDAs
have been tested in Illinois for
the past three years by the Chicago-based Women’s Self-Employment Project (WSEP) which is
ready to spread both the word
and the program to other parts
of the state.
IDAs are more than a bank
account. WSEP has developed an
investment system for lowincome individuals that works.
Individuals deposit their savings
monthly for a period of two
years. Their savings trigger a
matching amount of money
from a WSEP IDA-Partner, like
Harris Bank.
Economic literacy
One of the most important elements of becoming economically
empowered is to gain an understanding of the economy, how
money and finance work, how
assets are developed and how
individuals can plan and secure
assets. Economic literacy is provided by WSEP through training
and counseling to develop literacy in these areas. In a few short
years, the IDA is big enough for
the account holder to invest in a
business, homeownership or
education.
The idea of an investment system
is important in the IDA program.
A system means that it takes

various parts for the whole to
actually work. Harris Bank is a
very important part of WSEP’s
IDA system. Harris has not only
provided administration of the
accounts at no cost to IDA holders or to WSEP, but also provides
matching funds, and staff time.
The other important partner
in the system is the low-income
family member – in WSEP’s
case – a low-income woman. It
is her earnings through her
business or wage employment
that provides the individual savings for the investment account.
Most of the women in the program had no regular savings prior to the IDA program.
Although the incentive to have
their accounts matched at a 2:1
ratio was important, most of the
women reported that the discipline of required savings and the
economic education were the
most helpful aspects of the program.
Welfare reform
The initial IDA program was
part of WSEP’s welfare reform
strategy. All the IDA participants
were using self-employment to
remove themselves from the
welfare roles. WSEP saw the IDA
as an asset-building strategy that
could not only help women
move off welfare but also a strategy to move their families out of
poverty. Indeed, the results of
the first pilot program have
been positive and met WSEP
and its partners’ expectations.

Seventy percent of the women
completed the program saving a
total of more than $57,000. Business and home ownership were
the most frequent usage of the
IDA (41 percent and 27 percent
respectively).
WSEP has made IDAs a core
component of its programming,
and along with Harris Bank,
plans to open 500 IDAs by the
only year 2000 for women on
welfare and those meeting the
Earned Income Tax Credit
guidelines.
Both WSEP and Harris Bank see
the IDA as a real investment
opportunity for working poor
families, and some legislators
agree. In August 1998, then Governor Edgar signed legislation
that established an IDA program
for the State of Illinois and
appropriated funds to match
dollar for dollar, contributions
made by participants. WSEP currently administers the State IDA
program.
Assets have power
Researchers, like Michael
Sherraden at Washington University, in St. Louis, have documented several attitudinal, social
and behavioral effects of asset
accumulation including greater
future orientation, personal efficacy, family stability, involvement
in children’s education, respect,
and participation in the community and civic affairs. An asset
enables, underwrites, and
focuses economic activity.

continued on page 11
10

Individual Development Accounts: Building Assets, Wealth, and Opportunity
continued from page 10

Investment is a key theme at
WSEP. Providing a vehicle for
women to invest in themselves
maximizes the investment WSEP
makes when it provides a loan to
the woman’s business. Clara
Wilkins, a WSEP entrepreneur, is
a good example. As WSEP
worked to assist Clara with her
business plan and loan application, it was clear that Clara would
need additional funds in year
three of the WSEP loan. Her
profitability was lean, but a
$2,000 cash injection would give
her the cushion needed. The IDA
was a perfect instrument for
Clara. She enrolled and is saving
for her business future. When the
IDA matures in two years, Clara
will have her own funds, real
equity to invest in the business.
New grant program
The groundwork laid by WSEP is
not only paying off at the local
and state level, but Congress
recently passed the “Assets for
Independence Act,” which
authorizes federal spending of
up to $125 million over five years
for individual development
accounts. In 1999, $25 million
was awarded in competitive
grants to eligible institutions.
WSEP was the only organization
in the State of Illinois to receive
one of the awards. The federal
program has provided a terrific

opportunity for WSEP to extend
its partnerships in the IDA initiative. The Northern Trust Bank
and the Illinois Department of
Human Services have joined the
IDA partnership by providing
funds to match the federal government’s award of $315,000.
This new grant funding will allow
WSEP to open an additional 400
accounts over the next four
years.
Picture is not very rosy
This level of public-private support is coming at a crucial time.
Although the country can claim
economic growth and prosperity,
the picture is not very rosy for
the poor or for African-Americans, in particular. A recent publication, The State of Working
America, released by the Economic Policy Institute in Washington, D.C., presents data that
shows that wealth inequality has
grown worse in the 1990s.
Between 1989 and 1997, the
share of wealth held by the top
1 percent of households grew
from 37.4 percent of the national
total to 39.1 percent. Over the
same period, the share of all
wealth held by families in the
middle fifth of the population
fell from 4.8 percent to 4.4 percent. Between 1989 and 1995
(the latest year for which data are
available), the share of households with zero or negative
wealth (families with negative
wealth owe more than they own)
increased from 15.5 percent to
18.5 percent of all households.
By 1995, almost one-third (31.3
percent) of black households
had zero or negative wealth.

This data should not be surprising. We have known that the distribution of wealth is more concentrated at the top than is the
distribution of income. It is one
of the reasons why WSEP launched
the IDA program with the support
of the Joyce Foundation in 1996.
We have always used the statistic
from Black Wealth/ White Wealth
by Melvin Oliver, now vice president of the Ford Foundation, that

www.frbchi.org

on the web

The Federal
Federal Reserv
Reserve Bank
of Chicag
Chicago's web
web site offers
offers
a wide variety of timely
timely
and unique information,
information,
including:

www.frbchi.org

IDAs are investments and opportunities at their finest. IDAs
allowed Zelinda Davis-Kirk to say
farewell to welfare, “If it wasn’t
for the IDA, I would have still
been receiving welfare for an
additional 12 to 18 months,”
Ms. Davis said.

Research
• Economic Data and Research
• Banking Data
Resources
• Educational Resources
Publications
lications
• Pub
Community
unity and Economic
• Comm
Devvelopment Initiatives
Initiatives
• De
Development
• Economic Dev
News
ws & Vie
Views
ws
• Ne
Community
unity Reinv
Reinvestment
• Comm
Information
• Act Information
Community
• Consumer & Community
Information
ormation
• Inf

blacks hold $.08 to every $1.00
held in assets by whites. More
recently we heard one economist
say that blacks have gained only
10 percent in assets since the end
of slavery.
Whether the latter statistic can
be documented or not, it sounds
quite inflammatory. I think the
inequalities that exist and are
documented should be enough
to inflame all of us. Whether we
are in the community development financial institution arena,
or the traditional financial industry, whether we are politicians, or
foundation executives and board
members, the data is so compelling that we must find and
support vehicles for greater asset
distribution.
Helping low-income women, as
well as welfare recipients, move
from welfare recipients to business owners and homeowners
through individual development
accounts is truly one of those
vehicles and a great beginning.
We have a long way to go in truly
democratizing opportunity.
Working and staying poor
doesn’t really provide families
with opportunities. Building
assets and creating wealth can. ■
For more information on IDAs,
WSEP’s programs and how bank
support of IDAs may be an eligible
activity for the Bank Enterprise
Award program, contact Connie
Evans, President of the Women’s
Self-Employment Project, at 20 North
Clark Street, Suite 400, Chicago, IL
60602, phone: 312/606-8255,
email: cevans@wsep.com.

11

From Our Research Department
Labor Market conditions
in the Seventh District

adjusted to account for normal
seasonal variations.

The Federal Reserve Bank of
Chicago serves the Seventh Federal Reserve District, which
includes the entire state of Iowa
along with large portions of Illinois, Indiana, Michigan, and
Wisconsin. At the present time,
there are 43 Metropolitan Statistical Areas (MSAs) in the Seventh District. The geographic
boundaries of MSAs are defined
by the U.S. Office of Management and Budget (OMB) as economic areas encompassing communities that are tightly linked
by a flow of commuters,
migrants, goods and services,
and payments.

Currently, labor markets in the
Seventh District are much
tighter than the nation as a
whole. In sharp contrast to the
1980s, the region’s unemployment rate has been running
below the national average since

Unemployment rates are useful
indicators of the labor market
conditions in local areas. The
unemployment rate is defined as
the percentage of adults in the
work force who are not currently
employed but are actively seeking employment. Importantly,
the work force, and hence the
unemployment rate, does not
include workers who are not
actively looking for work. This
means that workers who have
given up looking for work are
not counted as unemployed.
Unemployment rates for Seventh District MSAs are derived
from data provided by the United States Department of Labor
(USDL). Using definitions and
guidelines established by the
USDL to ensure consistency
across state lines, state agencies
calculate MSA unemployment
rates on the basis of a monthly
payroll survey and unemployment insurance records. The
rates used here have been

12

the mid-1990s, the national rate
of employment growth caught
up to, and has since surpassed,
the region’s. With few signs of
any softening in the Seventh District economy, and relatively
unfavorable migration trends,
employers can expect little relief
from tight labor markets in the
near term.

Midwest Unemployment Rate
Percent thru October 1999

Midwest

U.S.

1990

1992. While good news for the
region’s workers, whose wages
and salaries are growing faster,
the very low levels of unemployment are making it difficult for
employers to find quality help.
Broad-based labor shortages,
across both industry and occupational categories, have contributed greatly to the District’s
slowing employment growth in
the last few years. Earlier in this
decade, a strong rebound in our
manufacturing industries, as
well as robustness in construction and services, led to employment growth in the region that
outpaced that of the nation. As
labor markets in the region
tightened more dramatically in

Labor Market Highlights
Labor markets in the Seventh
Federal Reserve District tightened further in the fall and
remain well below the national
average. The seasonally adjusted unemployment rate in October was 3.5 percent, up slightly
from September’s 3.4 percent
and last October’s 3.8 percent.
By contrast, the national rate of
unemployment was 4.1 percent
in October.
Iowa and Indiana were neck and
neck in the race for the lowest
unemployment rate of District
states, at 2.2 percent and 2.7 percent, respectively. Wisconsin also

came in under 3.0 percent,
while Illinois had the highest
rate of the five states, 4.3 percent.
Of the District’s 43 metro areas,
Madison, Wisconsin had the
tightest labor markets, with a
remarkably low seasonally adjusted unemployment rate of 1.3
percent. The Flint, Michigan
metro area had the highest rate
at 5.4 percent. Only the Davenport-Moline-Rock Island, IL-IA
MSA displayed a significant
increase from last year, due in
large part to softness in the
area’s farm machinery sector.
With labor shortages prevalent
through most of the Seventh
District, employers continue to
struggle to find qualified workers. Conversations with business
leaders, as well as indexes such
as Manpower Inc.’s hiring plans
survey, suggest that demand for
workers in the region remains
as strong as, if not stronger
than, the nation as a whole. Yet,
with employment growth in the
region lagging that of the
nation, it appears that labor
shortages are hampering
employers' expansion and hiring
plans.
General wage pressures
remained subdued for the most
part, but reports of pay hikes
became more frequent in recent
months. These wage increases,
however, appear to be concentrated in a few occupational categories where worker shortages
have persisted for some time. ■
Richard E. Kaglic
Economist

Seventh District Labor Markets
Unemployment conditions for October 1999

Green Bay
Wausau
Oshkosh
Saginaw
Sheboygan
Grand Rapids

Flint

Lansing

Madison
Milwaukee

Cedar Falls/Waterloo

Racine
Kenosha

Janesville

Dubuque

Rockford

Sioux City
Cedar Rapids

Benton Harbor

Davenport/
Moline

Detroit

Chicago

Kalamazoo
Elkhart

Iowa City
Des Moines
Kankakee

Peoria

Gary

Normal/
Bloomington Lafayette

Springfield
Decatur

Champaign/
Urbana

South
Bend
Kokomo

Terre
Haute

Ann Arbor
Jackson

Fort Wayne

Muncie

Indianapolis

October Unemployment Rates 1999

Bloomington

Seventh District (MSAs), seasonally adjusted
over 5.5%
4.5 to 5.5
3.5 to 4.5
under 3.5

NOTE: All rates are subject to revision.

13

Small Business and the Year 2000
How is it impacting your firm,
business suppliers and other
business partners?
The inability of many computer
systems to process dates beyond
December 31, 1999, commonly
known as the Year 2000 problem,
seems like a bad joke.
However, the Year 2000 problem
is a huge issue, locally, nationally,
and even globally, and it poses
unique challenges for the small
business owner. The problem
exists because dates are encoded
in a YYMMDD six-digit format
rather than a YYYYMMDD eightdigit format. Unfortunately, the
six-digit date field doesn’t differentiate between the 20th and
21st century. That could cause
significant problems in computer systems that process date-sensitive information and calculations.
To assist small businesses in
understanding the myriad
aspects of the problem, the Fed
recently released Small Business
and the Year 2000. The pamphlet–
available through the San Francisco Fed’s web site at http://

www.frbsf.org/fiservices/cdc and
in hard copy from the Federal
Reserve Bank of Chicago –
defines the Year 2000 problem
and discusses steps small business
owners can take to begin
addressing the problem.
The pamphlet provides additional information on maintaining
small business information systems in a Year 2000 compliant
manner, contingency planning,
and useful reference materials
is also provided. A five-phase
framework (see chart below) is
suggested to manage small businesses’ Year 2000 approach. If you
need to increase your knowledge
about the Year 2000 problem,
you’ll want to get your hands on
this informative publication
soon. After all, the Year 2000
will come whether you’re ready
or not. ■

For more information, contact the
SBA at (800) U-ASK-SBA. For the
SBA’s Y2K fax-back service, call
877/ RU-Y2K-OK, or visit the SBA’s
Y2K Web site at www.sba-gov/y2k/.

Other sources of help
There are many helpful sources you can turn
to in making your business ready for the century date change.
There are thousands of web sites dedicated to the year 2000 problem. Many sites have links to sources of free software, planning
tools, discussion groups, and so forth. Below is a short list of some
useful web sites:
http://www.year2000.com

Peter de Jager’s web site--a good source of links to other sites
http://www.compinfo.co.uk/y2k/manufpos.htm

links to computer manufacturers’ home pages where you can find
Year 2000 compliance information
http://www.software.ibm.com/year2000/

IBM’s Year 2000 page
http://www.microsoft.com

Microsoft’s Year 2000 page
http://www.gmt-2000.com/main.htm

Greenwich Mean Time’s home page with evaluations of PC testers
and BIOS chips useful for PC evaluation
http://pw2.netcom.com/~helliott/00.htm

the so-called “mother of all Y2K link sites” contains many links
to other sites
http://www.jks.co.uk/y2ki/confer/notices/dtisme01.htm

link to report entitled “Helping the Small Business Tackle Year 2000”
http://www.sba.gov/y2k/

See “Century Date Change …Loan Program…” on page 7
Are You Y2K OK?

The Small Business Administration web site
http://www.year2000.unt.edu/WCS

Society for Information Management
Suggested Readiness Steps
Phase
1 Awareness
2 Inventory
3 Assessment
and Planning
4 Correction
and Testing
5 Implementation

14

Approach
Educating and involving all levels of your
organization in solving the problem
Creating your checklist toward
Year 2000 readiness
Examining how severe and widespread the
problem is in your business
and what needs to be fixed
Implementing the readiness strategy you
have chosen and testing the fix
Moving your repaired or replacement
system into your production environment

http://www.isquare.com/y2k.htm

The Small Business Advisor web site
If you are a financial institution and you have a regulatory or supervisory
question about Year 2000 compliance, contact Ray Bacon, director, Special
Exams, Federal Reserve Bank of Chicago, 312/322-5916.
If you are a small business person and have questions about the publication Small Business and the Year 2000, as well as steps the Federal Reserve
System is taking to address Year 2000 concerns in financial institutions,
contact the Consumer and Community Affairs Division of the Federal
Reserve Bank of Chicago, 312/322-8232.

Around the District
Michigan
The Detroit Entrepreneurial
Institute has been designated a
Women’s Business Center by the
U.S. Small Business Administration. The Institute will receive
$638,000 to expand services.
Among other things, it will use
the money to develop a website
for women interested in starting
or expanding a business. Proceeds also will be used to sponsor a procurement or trade fair
conference, provide economicliteracy workshops, and provide
access to industry consultants.
The Institute becomes one of 80
centers nationally that provide
training, counseling and mentor-

ing to women who are entrepreneurs or potential entrepreneurs. The centers direct much
of their training and counseling
toward disadvantaged women.
Offerings include 11-week training programs, business counseling, a computer center, reference library, graphic-design
services and a loan fund. ■
For additional information, call the
Institute at 313/961-8426.
Illinois
The Illinois Development
Finance Authority (IDFA)
recently announced that it will
issue new bonds and invest venture capital through its Illinois

Venture Investment Fund (IVIF)
for a combined amount of
$346,950,000. The bonds and
venture capital, approved at a
recent IDFA directors meeting,
will fund a total of nine private
and public projects across the
state of Illinois.
Bobby Wilkerson, former IDFA
director, said, “We are very happy to report that IDFA continues
to provide financial support for
the economic and social future
of Illinois and its communities.
This financing round is broad
based and will help cultural institutions remain strong, improve
access to healthcare, make homes
more affordable, improve Illinois

manufacturing and construction,
and, most importantly, create an
estimated 168 new jobs.” ■
With four offices statewide, the
Illinois Development Finance
Authority is a self-supporting,
quasi-governmental agency that
stimulates economic development
throughout Illinois by providing
affordable financing to businesses,
not-for-profit organizations and
local governments, at no cost to the
taxpayer. For additional information
regarding the Illinois Development
Finance Authority programs contact
Dianne Zaubi, 312/496-1135.

Business Access to Capital and Credit Symposium
The Community Affairs Office
of the Federal Reserve System
recently sponsored a research
conference, Business Access to
Capital and Credit, in Washington,
D.C. Distinguished economists
and scholars presented and discussed 16 papers on topics such
as the effects of financial indus-

try consolidation on lending,
credit scoring and securization
for small business loans; access to
credit for minority-owned businesses; and microlending. The
conference was designed to stimulate additional research. The
papers presented are “working
papers,” preliminary studies that

Fed Releases a New Video on Women-Owned Businesses
The Federal Reserve is now offering a videotape designed to
heighten awareness among lenders about the business opportunities available to them in lending to businesses owned by women.
The new videotape, To Their Credit: Women-Owned Businesses,
relays the credit-seeking experiences of new successful women
business owners.
Through testimonies and discussions with lenders and women’s
business organizations, the video stresses how women commercial
borrowers should build a relationship with a lender. The video further emphasizes the need for women to prepare a comprehensive
business plan.
In addition, lenders are shown the staying power and profitability
that this fast-growing segment of the economy can afford their
financial institutions.
The videotape is available through FVS Media for a nominal fee. To place
an order, call 800/555-5471.

are potentially subject to revision. Alan Greenspan, Chairman,
Board of Governors of the Federal Reserve System, presented the
keynote address and a luncheon
address was given by Edward M.
Gramlich, Member, Board of
Governors of the Federal
Reserve System. ■

For additional information contact
the Consumer & Community Affairs
division of the Federal Reserve Bank
of Chicago at 312/322-8232. The
full text of the Business Access to
Capital and Credit proceedings is
available at the Federal Reserve
System website at www.bog.frb.fed.us.

CDFI Program ➜ NOFA ➜ Application ➜ $$ Awards
A Notice of Funds Availability
for the 2000 CDFI Program –
the Core and Intermediary
Components – was published in
the Federal Register on November 1, 1999. The application
deadline for the Core Component will be January 20, 2000
and the deadline for the Intermediary Component will be
January 18, 2000.
A Notice of Funds Availability
for the Technical Assistance
Component will be published
in the Federal Register on

January 4, 2000. The application
deadline will be March 28, 2000.
For copies of the various notices
and applications or a schedule of
training workshops, contact the
Community Development Financial Institution Fund at 202/6228662. For additional assistance,
you may also contact the Consumer
and Community Affairs Division
of the Federal Reserve Bank of
Chicago at 312/322-8232

15

Economic Development

News &Vıews
Volume 5 Number 3
December, 1999

Recycled Paper

Economic Development
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