What is the economic development fund?
The
Economic Development Fund (EDF) is a program that has the task of helping economic growth in targeted areas. EDF can be established through local, regional or national initiatives, or can be created as a non -profit foundation. The main features of the Economic Development Fund may include offering loans and grants to qualified candidates, strategic investments in promoting economic growth and ensuring the future of EDF through funding management.
The establishment of the economic development fund is often a reaction to circumstances that can be depressed in the target area of depressive growth. For example, a factory city that loses its main job providers can lobby for local administration to create EDF to help develop new sources of jobs and community growth. In developing countries where there may be limited access to financial infrastructure, such as banks, EDF can provide people and businesses mechanisms for receiving loans or grants for schooling, Bussinessand community programs.
Some EDFs work to target specific segments of the local economy for growth. One examples of targeting may be the encouragement of local agricultural development through business and real estate loans for small farmers. The target approach can create a positive effect on the economy as a whole; By financing local agricultural persecution, EDF can encourage the use of available land, increase job opportunities and reduce food costs for the locals.
The process of receiving funding from the economic development fund depends on the availability of financing and individualized application requirements. Applicants may be obliged to provide detailed information about their existing or proposed project and usually provide frequent updates and data that help ensure that the financing is properly applied. Depending on the rules of the Fund applicants from CasTice -mostly depressed regions may take precedence over regions from multiple rich areas, although both places under the umbrella of the fund. Financing can be issued as a grant, loan or even as a necessary infrastructure that will allow the project to continue.
Economic Development Fund can also meet its growth mission through investment. By providing capital in return for the percentage of business, EDF can stimulate growth and at the same time finance its own continuing existence. However, investments in new businesses can bring risk, as businesses can easily fail despite the generous start-up funds. Perhaps because of this risk, not all EDF uses investment -based structure and instead rely on the financing of private donors, foundations or government income as a means of financial survival.