Our Policy & Research program provides timely research and analysis on the broader economic impact that our small business lending programs and community development work to put forth thoughtful policy recommendations to strengthen our state’s economy. Through collaborative efforts with universities, research partners, and advocates, The Support Center publishes research reports and studies that illustrate the impact of community-based financial service providers in under-represented communities, and to present cross-cutting solutions for North Carolina’s most pressing economic challenges. For information about our recent publications, see below.
States that offer programs that have an explicit aim at supporting small businesses have a significant impact on their local economy. In this report, TSC looks at how two states – South Carolina and Virginia – are making huge contributions to their state’s economy through such partnerships. Together these programs have leveraged state support to raise millions of dollars to invest in hundreds of small businesses, create thousands of jobs, and build assets that are reinvested in the communities they serve. This report also provides policy recommendations on how North Carolina could establish similar successful partnerships with Community Development Financial Institutions and other mission-based lenders.
Venture capital (VC) is an important tool for spurring innovation among companies that in turn generate economic growth, create jobs, and drive our economy. VC firms help to provide entrepreneurs the capital they need to develop concepts, start companies, grow companies, manufacture products, and eventually become publicly traded. While obtaining VC funding can be a catalyst for an emerging firm, the market for VC funds is highly competitive, with less than one percent of firms receiving VC funding. This brief provides an overview of the VC industry in North Carolina.
Nearly 70 small business across the state were able to generate millions in revenue and retain or hire 363 workers according to findings in this report. TSC reviewed the loans it made between fiscal years 2012 and 2013 to determine the economic multiplier of its investment. During that period, TSC provided loans to 69 small companies in 34 counties across the state, totaling $6.2 million. Using an input-output analysis, which measures the ripple effects of their loans in the local economy, the study determined that our borrowers have generated important economic activity that would otherwise not have happened without TSC’s investment.
Community Development Financial Institutions in North Carolina (November 2012)
Community Development Financial Institutions, or CDFIs, are community-based financial service providers that are working to create economic opportunities in the most distressed and underserved communities in the nation. There are 16 CDFIs currently operating in North Carolina. This report illustrates the impact of CDFIs in our state economy and in creating jobs and expanding access to capital across the state.
Small Business Lending in NC (May 2012)
As large banks have been pulling back from small business lending, community-based lenders have been stepping in to try to fill the lending gap. In this report, “Small Business Lending in North Carolina: The Increasing Role of Community Lenders,” The Support Center examined small business lending patterns in the state by banks, Community Development Credit Unions, Community Development Financial Institutions, and credit unions. It illustrates that while larger banks focus their lending on upper-income areas of the state, CDFIs, CDCUs, and credit unions focus more on providing small business loans to entrepreneurs in lower-income areas.