Support MI up for updates Subscribe up for updates
About Research Events Centers Newsroom Currency of Ideas
 
Milken Institute | Research | Publications | Increasing Access to Capital in the Rio Grande Valley
 Increasing Access to Capital in the Rio Grande Valley
Increasing Access to Capital in the Rio Grande Valley

The Rio Grande Valley of Texas is one of the poorest regions in the United States. More than one-third of the population lives in poverty, and access to capital and credit – necessary to create economic opportunity – is severely limited. Meanwhile, investors with plenty of capital struggle to find new opportunities to earn even modest returns in today’s low-interest-rate environment. A diverse group of leaders has come up with some potential solutions that could help.

The challenges faced by both the Rio Grande Valley and investors can be addressed by innovations that bring together Wall Street and Main Street, according to “Increasing Access to Capital in the Rio Grande Valley.” The report identifies barriers – including lack of infrastructure and traditional lenders’ misperception that residents present too great a risk – and goes on to suggest a number of policy and financial innovations that can move capital off the sidelines and help the Valley break out of poverty.

The report summarizes the proceedings and findings of the Financial Innovations Lab® the Institute held last October in Weslaco, Tex., with support from the Ford Foundation. Labs are pop-up “think tanks” that convene investors, business development non-profits, bankers, academics, and policy activists to focus on an issue. The solutions from the Lab, though developed with the Rio Grande Valley in mind, can also be applied to other capital-starved regions.

Among the solutions described in detail in the report:
• Establish a regional leadership council in the Rio Grande Valley
• Promote education at all levels, from job training to personal finance
• Continue and expand federal programs that provide additional capital to communities
• Deploy the next generation of program-related investments by foundations – typically in the form of below-market loans or credit guarantees and equity investments

For more solutions and recommendations, download the report here at no charge, or order a hard copy.

 
Search All Publications
Paper or pixels?
2 ways to subscribe to
the Milken Institute Review
Download the app for
iPhone, iPad and Kindle

Buy new digital editions of our quarterly economics journal for $1.99, purchase back issues for 99 cents or get a year's subscription for $5.99. Access links to related video and other content.
Order a 1-year subscription
Receive hard copies for $59, a small price to pay for our edgy, accessible and expert take on the latest in economics.
Subscribe Now
About Us
  Careers
  Contact
  Download Annual Report
  FAQs
  Locations
  Our Team

Blog


Topics

Events
  Associates
  Conferences
  Global Conference
  Partnering for Cures
  State of the State
  Summits
  Asia / California / London
  Forums
  Labs
  Young Leaders

Experts
Newsroom
  Latest News
  News Videos
  Press Releases

Research
  Centers
    Asia
    California
    FasterCures
    Financial Markets
    Israel Center
    Public Health

Initiatives

Publications
  Books
  Financial Innovations Labs
  Milken Institute Review
   Amazon Apps
   App Store
  Research Reports
  Viewpoints
  Search All Publications
Support MI
  Associates
  Donate
  Sponsorships
  Strategic Partners

Follow Us
  @Twitter
  Facebook
  YouTube
  Google+
  LinkedIn
  iTunes U

Related Sites
  Partnering For Cures
  Celebration of Science
  Chairman's Corner
  Melanoma Research Alliance
  FasterCures

©2014 Milken Institute