Capital Formation and the Inner City
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James Flanigan made the point in a recent column (“Capital Offensive,” Oct. 25) that the need in the inner city is not more welfare but more capital formation. As usual, Flanigan was right on the money, so to speak.
To a growing extent, local government recognizes that need. The Community Development Bank is only the latest entry in government’s parade of efforts. Of less notoriety is the Los Angeles County Community Development Commission’s Micro-Loan Program. That program is of value because it provides below-prime-rate loans for “wanna-be” entrepreneurs as well as for existing businesses. It offers these loans to applicants who might not qualify for a business loan elsewhere. Collateral is not the issue it would be in the private sector.
Government rightfully belongs at the forefront of efforts to provide vitally needed capital in the inner city. That is where it can be, with public support.
CARLOS JACKSON
Executive Director
Community Development
Commission
Monterey Park
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