Day 62: Do I Need a Cash Fund?

Day 62:  Do I need a cash fund?  Last week I attended and economic development conference.  One of the sessions was about incentives.  One of the presenters was a local economic developer.  He told the group about the “closing fund”  that their community has.  It is a multi million dollar fund.  In the last year they have had several successes.  They have used the money to purchase a building for a company.  They have used to pay equipment moving expenses, etc.  But the important piece is they have a pretty strong claw back in place.  If the company does not meet a job number after x number of years they will all or some portion of the cash they received.  This is a competitive industry.  If your community does not have a cash fund, you will probably lose a few projects.  It is up to your organization to have a cash fund.  If you can raise the money for such a fund, do it.  Next:  Should I care who my competition is?

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