What is economic development?

Economic development activities are generally those that promote commerce, trade and employment.  Under the CRA, such activities may include:

  • Lending to small businesses or farms that have less than $1 million in gross annual revenues
  • Lending to small businesses or farms through government sponsored programs or entities including Community Development Financial Institutions, the Small Business Administration, Small Business Investment Companies, Community Development Financial Institutions, Specialized Small Business Investment Companies, and Rural Business Investment Companies
  • Investing or donating funds into community development venture capital companies that finance small businesses
  • Investing or donating funds into organizations or programs that provide essential services to enable LMI individuals or areas to sustain employment, such as day care facilities, job training or certification programs, and job placement programs

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