Explains the importance of small business development to modest-income urban neighborhoods, including discussions of access-to-credit problems and the role of CRA and economic development finance in these markets. Provides a framework for developing strategies for addressing small business financing needs in targeted markets.

The most recently available home mortgage data for the Chicago region show that refinancing loans were not uniformly accessible to all residents.  As a result, many borrowers, particularly African-Americans, have not benefited from the refinancing boom of the 1990's.

Analyzes patterns of small business lending in the Chicago region. Notes patterns in lending related to geography and race. Highlights importance of branch networks for small business lending and discusses credit card banking.

Shows that community development (CD) banks far outperform regular banks in serving low-income and minority communities. Includes extensive data analysis which describes the performance of banks in Chicago. Demonstrates that a considerably higher percent of CD banks' home loans go to lower-income neighborhoods and borrowers than is true for all other lenders. The same pattern is repeated for loans to minority neighborhoods and borrowers.

Describes the benefits of collaboration between CDFIs and mainstream financial institutions; regulatory and legislative opportunities for building and strengthening such partnerships, and an analysis of the types of relationships that have evolved in recent years. Detailed case studies describe how creative partnerships have developed between a variety of CDFIs and conventional lenders.

Lending test under the proposed 1994 CRA rules show that some large Chicago area mortgage companies have poor lending records in low- and moderate-income neighborhoods.

Katy Jacob, Malcolm Bush, and Daniel Immergluck

This report examines the reality of credit unions' claim that they honor the mission stated in the Federal Credit Union Act to meet the savings and credit needs of "persons of modest means." The report also discusses why it is so important that credit unions fulfill this statutory responsibility and how they might do so more effectively in the future.

Describes the double bottom line of socially responsible investment policies which includes a favorable rate of return and an investment vehicle that meets certain socially responible criteria.  Contains interviews with staff of Shorebank and the Calvert Fund.

This report documents the asset development programs of five community development credit unions and illustrates the several diverse strategies to empower lower-income people to develop modest assets.  Case studies include Central Appalachian Peoples FCU, Quitman County FCU, Northeast Community FCU, Progressive Neighborhood FCU, and Zion United Credit Union.