11.437 | Fall 2016 | Graduate
Financing Economic Development


Required Text

[SEI] = Seidman, Karl F. Economic Development Finance. Sage, 2005. ISBN: 9780761927099.

Part 1: Course Introduction/Capital Markets and Economic Development Finance Systems


[SEI] Chapter 1, pages 3–7.

Malpezzi, Stephen. “Local Economic Development and its Finance” in White, Sammis B., and Zenia Z. Kotval. Financing Economic Development in the 21st Century. Routledge, 2012. ISBN: 9780765627834.


[SEI] Chapter 1, pages 7–19.

Bloom, Paul N., and Gregory Dees. “Cultivate Your Ecosystem.” Stanford Social Innovation Review 6, no. 1 (2008): 47–53.

Wood, David, Katie Grace, Robin Hacke, and John Moon. “The Capital Absorption Capacity of Places: A Research Agenda and Framework.” Cambridge, MA: Living Cities and the Initiative for Responsible Investment at Harvard University (2012).

Newberger, Robin G., and Maude Toussaint-Comeau. “Developing Small Businesses and Leveraging Resources in Detroit: An Informed Discussion Among Financial Institutions, Policymakers and Other Stakeholders in Detroit.” Profitwise Apr (2013): 1–11.

Part 2: Business Financing


[SEI] Chapter 2.

Berger, Allen N., and Gregory F. Udell. “The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle.” Journal of Banking & Finance 22, no. 6 (1998): 613–673.

Mills, Karen, and Brayden McCarthy. “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game.” HBS Working Paper Series (2014): 3–7, 36–56.


[SEI] Chapter 3.

Amazon 2015 Annual Report. Read the financial statements on pages 37–42.


Pages 25–44, 51–74 in Anthony, Robert Newton, David F. Hawkins, Kenneth A. Merchant, Liyan Wang, and Meijie Du. Accounting: Text and Cases. Irwin/MrGraw-Hill, 1999. ISBN: 9780073379593.

Pence, Craig. “Accounting Lecture 01 - Basic Concepts.” YouTube. Accessed April 7, 2017.

-- –. “Accounting Lecture 02 Part II–Transactions and Statements.” YouTube. Accessed April 7, 2017.

-- –. “Accounting Lecture 17–Corporate Income Statement.” YouTube. Accessed April 7, 2017.


[SEI] Chapter 4.

Community Development Venture Capital Alliance Return on Investment Project. “Measuring Impacts Toolkit (PDF).” 2005.

Opportunity Finance Network. “The Triple Bottom Line Collaborative: CDFIs and Triple Bottom Line Lending.” 2007: 3–15.

Resource: Triple Bottom Tool. Skim website.


[SEI] Chapter 5.


[SEI] Chapter 6, pages 111–123.


[SEI] Chapter 7.

Healy, Damon. “The A. Alfred Taubman Center for Design Education: A Case Study about the Adaptive Reuse of Detroit’s Historic Argonaut Building as an Educational Institution.” University of Michigan (2009): 6–31.


[SEI] Chapter 6, pages 123–132.


[SEI] Chapter 15, pages 341–354.

Milford, Lewis, Devashree Saha, Mark Muro, Robert Sanders, and Toby Rittner. “Clean Energy Finance Through the Bond Market.” Brookings Institution, Brookings Rockefeller Project on State and Metropolitan Innovation (2014).

Energy Programs Consortium. “Qualified Energy Consortium Bonds (PDF–6.5MB).” December 2014.


[SEI] Chapter 15, pages 348–361.

Detroit Downtown Development Authority. “RE: Events Center Project - Bond Authorizing Resolution.” 2014.

Skid, Nathan. “Eastern Market Turns to Tax Law to Make Upgrades.” Crain’s Detroit Business. February 23, 2014.

Kildee, Dan. 2004. “The Genesee County Land Bank Initiative.” Flint, MI: Genesee County Land Bank.

Klimovich, Kristina, Katrina Managan and Jennifer Layke. “Setting the PACE 2.0: Financing Commercial Retrofits (PDF–1.9MB).” Institute for Building Efficiency. May 2014.

PACENation. “C-Pace Market Update: 2016 Q1 (PDF–2.1MB).” 2016.

Part 3: Finance Tools, Federal Resources, and Program Models


La Franchi, Deborah. “New Markets Tax Credits: A Growing String of Successes Across the Country.” Economic Development Journal 9, no. 4 (2010): 5–13.

New Markets Tax Credit Coalition. “The New Markets Tax Credit Progress Report 2016 (PDF–3.3MB).” 2016.

M-1 Rail News. “M-1 Rail Finalized New Market Tax Credit Funding for Detroit Streetcar Project.” December 23, 2014.


Abravanel, Martin D., Kassie Bertumen, Rachel Brash, Zach McDade, Nancy M. Pindus, and Brett Theodos. “New Markets Tax Credit (NMTC) Program Evaluation: Final Report (PDF–1.6MB).” The Urban Institute. April 2013. Pages i–xx.


[SEI] Chapter 14.

Brash, Rachel, Megan Gallagher, Christopher R. Hayes, Shelli B. Rossman, Kenneth Temkin, and Brett Theodos. “Key Findings from the Evaluation of the Small Business Administration’s Loan and Investment Programs.” The Urban Institute. 2008. Pages 1–29, 36–41.

Community Development Financial Institution Fund. “Investing for the Future: Fiscal Year 2013 CDFI Fund Year in Review (PDF–3.3MB).” U.S. Department of Treasury. 2014.

Community Development Financial Institution Fund. “Overview of What We Do.” U.S. Department of the Treasury. 2017.

Prunella, Priscila, Brett Theodos, and Alexander Thackeray. “Federally Sponsored Local Economic and Community Development: A Look at HUD’s Section 108 Program.” Housing Policy Debate 24, no. 1 (2014): 258–287.

State Small Business Credit Initiative. “A Summary of States’ Quarterly Reports (PDF–1.5MB).” U.S. Department of the Treasury. March 2016.


[SEI] Chapter 8.

Center for Regional Economic Competitiveness. “Filling the Small Business Lending Gap: Lessons from the U.S. Treasury’s State Small Business Credit Initiative (SSBCI) Loan Programs (PDF–1.6MB).” U.S. Department of the Treasury. January 2014.

Toussaint-Comeau, Maude, and Robin G. Newberger. “An Analysis of SBA Loans in Lower-Income and Black Neighborhoods in Detroit and Michigan.” Profitwise (2014): 1–14, and 17.

U.S. Department of Energy. “Section 1705 Loan Program.”

U.S. Government Accountability Office. “DOE Loan Programs: Information on Implementation of GAO Recommendations and Program Costs.” Pages 2–9 and Appendix I.

Board of Governors of the Federal Reserve System. “Report to the Congress on the Availability of Credit to Small Businesses (PDF–2.9MB).” September 2012. Pages 45–52.


Dilger, Robert Jay and Oscar R. Gonzales. “Small Business: Access to Capital and Job Creation.” (2014).

Kubert, Charles and Mark Sinclair. “State Support for Clean Energy Deployment: Lessons Learned for Potential Future Policy (PDF–1.2MB).” National Renewable Energy Laboratory. 2011. Pages 25–55.


[SEI] Chapter 9.

Newburger, Robin. “After the Financial Crisis: The Roles and Responsibilities of Banking Institutions in Financing Community Economic Development” in White, Sammis B., and Zenia Z. Kotval. Financing Economic Development in the 21st Century. Routledge, 2012. ISBN: 9780765627834.

JP Morgan Chase & Co. “Invested In Detroit’s Future: Two Years In (PDF–2.2MB).” 2016.

JP Morgan Chase and Detroit.

U.S. Securities and Exchange Commission. “Small Business and the SEC.”

Cohn, Stuart R. “The New Crowdfunding Registration Exemption: Good Idea, Bad Execution.” Florida Law Review 64 (2012): 1433.

Taylor, Ryan. “Equity-Based Crowdfunding: Potential Implications for Small Business Capital (PDF).” Advocacy: The Voice of Small Business in Government, Issue Brief 5 (2015).

Department of Licensing and Regulatory Affairs. “Crowdfunding: Things to Keep in Mind.” State of Michigan. 2017.


Carpentier, Cécile, and Jean-Marc Suret. “Entrepreneurial Equity Financing and Securities Regulation: An Empirical Analysis.” International Small Business Journal 30, no. 1 (2012): 41–64.


[SEI] Chapter 10, Chapter 17, pages 406–410.

Rutgers University Center for Urban Policy Research. “EDA RLFs: Planning, Local Structural Change, and Overall Performance.” 2002.

Council of Development Finance Agencies. “Revolving Loan Fund Resource Center.” 2017.


Foley, Rob, Joe Indvik, and Mark Orlowski. “Green Revolving Funds: An Introductory Guide to Implementation and Management (PDF - 4.9MB).” Sustainable Endowments Institute, Association for the Advancement of Sustainability in Higher Education. 2013.

National Association of State Energy Officials. “State Energy Financing Programs.”


[SEI] Chapter 11.

Freear, John, and Jeffrey E. Sohl. “Angles on Angels and Venture Capital: Financing Entreprenurial Ventures” in White, Sammis B., and Zenia Z. Kotval. Financing Economic Development in the 21st Century. Routledge, 2012. ISBN: 9780765627834.

New Economy Initiative. Review “NEI Stories” and “What We Fund” sections as related to early stage and high growth businesses.

Michigan Venture Capital Association. “Michigan Venture Capital 2016 Annual Research Report (PDF–2.5MB).” 2016.

Piazza, Merissa, Joan Chase, Chang-Shik Song, Elorm Tsegah, et. al. “Detroit Regional Analysis: Demographics, Economy, Entrepreneurship and Innovation.” Cleveland State University Center for Economic Development. April 2012.

NGA Center for Best Practices. “Issue Brief: State Strategies to Promote Angel Investment for Economic Growth (PDF).” February 14, 2008. Pages 5–10.

PricewaterhouseCoopers National Venture Capital Association. “MoneyTree™ Report: Q2 2016 (PDF).” Data provided by Thomson Reuters. July 2016.

Gaddy, Benjamin, Varun Sivaram, and Francis O’Sullivan. “Venture Capital and Cleantech: The Wrong Model for Clean Energy Innovation.” MIT Energy Initiative Working Paper. July 2016. Pages 2–12.


Economic Development Research Group. “Evaluation of the Minnesota Angel Tax Credit Program: 2010-2012 (PDF–3.4MB).” January 2014. Read Executive Summary (pages 1–5) and Analysis of Investment Disparities (54–68).

Nanda, Ramana, Ken Younge, and Lee Fleming. “Innovation and Entrepreneurship in Renewable Energy (PDF).” Harvard Business School (2013).


[SEI] Chapter 12.

Abramowitz, Adina, Bryony Edwards, and Genevieve Melford. “Community Development FInance in Los Angeles Challenges and Responses.” Opportunity Finance Network. July 2006.

Theodos, Brett, Sameera Fazili, and Ellen Seidman. “Scaling Impact for Community Development Financial Institutions (PDF).” The Urban Institute: Metropolitan Housing and Communities Policy Center. (2016).

Review materials on CDFI examples:


[SEI] Chapter 13.

Servon, Lisa J. “Microenterprise Development in the United States: Current Challenges and New Directions.” Economic Development Quarterly 20, no. 4 (2006): 351–367.

Glenn, Claire and Tracy Pierce. “Microenterprise Development in Michigan: Assessing Coverage, Access and Outreach.” Microenterprise Network of Michigan, CEDAM. 2012.

FIELD at the Aspen Institute. “U.S. Microenterprise Census Highlights.”

Explore the Economic & Community Development Institute and Maryland Capital Enterprises websites as examples of state-level microenterprise development entities.


Edgcomb, Elaine. “Entrepreneurship Development Systems: The WK Kellogg Foundation Demonstration (PDF).” Conference Presentation. St. Louis, MO, Nov 6 (2008).

Burrus, William. “Innovations in Microenterprise Development in the United States.” Accion USA (2006).

Part 4: Management of Development Finance Institutions


[SEI] Chapter 16 and pages 427–433.

Servon, Lisa J., Robert W. Fairlie, Blaise Rastello, and Amber Seely. “The Five Gaps Facing Small and Microbusiness Owners: Evidence from New York City.” Economic Development Quarterly (2010).

Newberger, Robin and Maude Toussaint-Comeau. “Bank Infrastructure and Small Business Funding (PDF–8.5MB).” Community Development and Policy Studies. Federal Reserve Bank of Chicago. 2014.

Hacke, Robin, David Wood, and Marian Urquilla. “Community Investment: Focusing on the System (PDF).” The Kresge Foundation (2015).

Dierkers, Greg, Sue Gander, and Devashree Saha. “State Clean Energy Financing Guidebook (PDF–3.7MB).” Environment, Energy & Transportation Division, National Governor’s Association Center for Best Practices. January 2011.


No readings


No readings


[SEI] Chapter 17.


Berger, Andrea, Marisa Barrera, and Joyce Klein. “Credit Scoring for Microenterprise Lenders (PDF).” Microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination, 2007.


[SEI] Chapter 18.

Robinson, Kelly. “Structured Finance for Economic Development Loan Funds.” Newark, NJ: Rutgers University Cornwall Center for Metropolitan Studies. Paper presented at the 2001 Annual Conference of the Association of Collegiate Schools of Planning.

Hangen, Eric, and Michael Swack. “Scaling U.S. Community Investing: The Investor-Product Interface (PDF).” Global Impact Investing Network, University of New Hampshire Carsey School of Public Policy. OCtober 2015.

SolarCity Completes Its Fourth Securitization.” PV Magazine. August 13, 2015.

Review CDFI Bond Guarantee Program website.


Tansey, Charles, Michael Swack, Michael Tansey, with Vicky Stein. “Capital Markets, CDFIs, and Organizational Credit Risk (PDF–4.6MB).” Carsey Institute at the University of New Hampshire. 2010.


No readings


[SEI] Chapter 19.

Levere, Andrea, Bill Schweke, and Beadsie Woo. “Development Finance and Regional Economic Development (PDF).” Corporation for Enterprise Development. July 2006.

Course Info
As Taught In
Fall 2016
Learning Resource Types
notes Lecture Notes
group_work Projects with Examples