Evaluating impacts of a CDFI



  • Official comment
    Michael Nealy

    Hello again!

    I'll answer the questions in the order in which you have posed them:

    Regarding the 2022 Loan:

    • I'm not entirely sure what exactly you are trying to model here. You say that they will receive a $500k loan, but what will the motor vehicle retail company do with these funds? Will they use them to expand the business facilities? Will they be used to fund additional employment? These are the kinds of questions you will need to answer before we can decide how to model the dollars in IMPLAN. If they will strictly be used for capital investments, you could model them as an Investment Spending Pattern. It is kind of a stretch to say that the company would not exist in this Region had it not been for this loan, which is what you would need to assume in order to say the annual operations are the impact of this $500k loan. If you can assume this reasonably, you would probably want to consider an Industry Contribution Analysis Event Type to input the value of operations that will be supported by this loan.

    Regarding the 2020 loan:

    • Points 1 and 2 are good here. For 3, like mentioned above, you would have to be able to assume that the operations would not have occurred in the Region had it not been for this loan (for example, think of a new business that came into the Region because of the loan, or one that would have had to relocate if not for the loan) in order for these operations to actually be an impact to the Region. I think you got 4 and 5 down, I would just note that if both of the construction values you have are in the same Dollar Year values (say both are in 2020 dollars), that you do not need to set up multiple Groups to parse out the construction Events, but be sure to report that the construction occurred over two years from 2020-2021. The article you linked is going to be a huge help here. Lastly, for 6, if this is simply what the total operation value is over the last 6 months of 2022, and you want to report the results of only these operations, then there is no further calculation to be made, just note that these Results only represent the operations of the business from July-December (not the full year). If you want to see what the results would have been given this 6 month value over a full year, you would multiply the results by 2, essentially doubling the operations to account for a full year. 


    Hope this helps!

    Michael Nealy

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    Indeed it does help, very much so. Exactly what we needed thank you!

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