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♦ <br />I. � <br />2 <br />and local economic developmenx officials impl�mented the Small Citie. <br />s Economgc <br />Development Program in some ways that could stimulate econoraiic growth, but the' <br />u act�ons <br />were often inconsistent with achieving the econ�mic development oals of <br />g th� program. <br />Consrstent with findings of �valuations of other such �rograms, the Small C' ' <br />it�es Econonue <br />Development Program has had few eff�cts on economiG grawth or on redistribution <br />to <br />distressed areas, z <br />r This paper first describes the Small Cities Economic D�veiopment Pro ra,m and <br />g <br />enumerates its explicit goals. The paper then assesses three poss�'�,1� framewvrk.s for <br />explaining the ineffectiveness of the pr�ogram in achieving those goals. Finall th,� <br />Y� p�per <br />make� re�ommendations for helpin,g this type of program achieve suci� goals more <br />successfully, if indeed these goals are the desired �aurpose. <br />The Smal] Cid�s Economic D�velopm�nt Program proyid�s financi,n for busines <br />� ses <br />and projects related to businesses, such as inirastnucture improvements. A lcxal ov <br />,g �ernrn�nt <br />applies to the state agency, the Department of Trade and Ecnnomic Devclo ment <br />P (D'�) � <br />for a grant on behalf of a specific business. The l�ca1 jurisdiction usuall lecyd <br />y s the mone:y to <br />the business, �IthoUgh some businesses receive grants, When the business <br />repays the loan, <br />the local �overnnnent d���i� SQmP or all of p,ach grant �lus in�er�st in a�revol ' <br />v�g loan fi�nd <br />for economic developr�e�i, 3 <br />$viarRarat F. Detitinr, "Iaside State and Lo�al EcoAomic Develo ment pro <br />Small Cities �ranomic Devel�pment Pro � ��� Tb� ��rd of Minnaso3a's <br />University of 11�Iianesota, St. Paul, MN, Fe�b. �1991� Margacet�E�9Dewart d� R���nal Research C�ter� <br />Bottom l�.ine on i.Qw-Interest Loans to At�siness: An Evaluation of Mina�ta'a S�Jg� �kerF,ca am�ic g to the <br />Development Program, • unpublished paper, May 1992, . <br />�M�esc�ta► Department of Eaergy and Economic Develo ment �EED .•�,�� <br />Development Program ,�pp�i�tion Maaual," St. Paul, MN, Jaa, lgg, 1 r"M��� S�� C��� �On°mic <br />