About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-194153 1 (1979-09-06)

handle is hein.gao/gaobachie0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASH4INGTON. O.C. 205 B-194153 September 6, 1979 The Honorable Charles H. Percy United States Senate Dear Senator Percy: This is in response to your request for a legal opinion concerning the initiation of a proposed pilot program that is designed to bring new industrial development projects to five depressed areas in the City of Chicago. The Economic Development Administration (EDA), an agency within the Department of Commerce would participate in the program under the authority set forth in 42 U.S.C. § 3142 (1976). EDA would guarantee loans made to private borrowers by private lending institu- tions with the guaranteed portion of the loan to be subsequently assigned to the City of Chicago and financed through the public credit markets. Implementation of the proposal would involve close cooperation between EDA and the Economic Development Commission (EDC) of the City of Chicago. Officials of both agencies have concluded that in order to alleviate conditions that result in unemployment, underemployment, and economic stagnation in certain economically depressed areas within the City, large amounts of private capital are necessary to attract major investments into these areas. It is felt that to obtain substantial private investment, financing at attractive terms and rates must be available. As stated in your letter: * * * The project seeks to demonstrate how short-term lending by commercial banks for working-capital needs and interim-construction financing can be supplemented by per- manent funding for major fixed-asset expenditures from the public credit markets in a manner which permits business to implement an urban reinvestment program. As further explained in your letter the proposed plan would work basically as follows: A business entity contemplating fixed-asset expendi- tures or requiring working-capital resources for a facility within the City would request assistance from a subsidiary of EDC, known as EDFA. If EDFA determines that the proposed project would create or preserve employment opportunities and would satisfy other neces- sary criteria, it would approve the project and request the involvement of a private lending institution. If the lender then satisfied its own

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most