RALEIGH, N.C. – A new joint venture between Local Government FCU and the University of North Carolina’s School of Government will provide cities, towns and counties $1.6 million to develop financing tools and train local government officials to develop finance programs.
The $1.1 billion credit union is giving the School of Government $1 million for a program called Expanding Development Finance in North Carolina, which will provide economically-distressed communities access to sophisticated finance products and services. The initiative aims to increase local governments’ and developmental nonprofits’ ability to encourage private investment through tax credit programs, self-financing bonds, special assessment districts and loan programs.
In a separate initiative, the credit union is providing $625,000 in funding through its Fellows Executive Development Program, which will provide mid-level managers in local government the skills needed to build and manage development finance programs.
“Major financial institutions are often not interested in small-scale economic development projects, such as retrofitting an abandoned downtown building or helping increase storefront signage along Main Street,” said Maurice Smith, the credit union’s president. “They also may not be willing to help local governments maneuver through the red tape involved with other supplemental sources of funding, such as tax credits.”
