David N. Cicilline - Mayor Thomas E. Deller - Executive Director

Glossary

We are especially grateful to the International Economic Development Council (IEDC) for contributing the majority of these definitions. For more information about IEDC, visit their website: www.iedconline.org

Glossary Menu

5 (2) | A (5) | B (14) | C (13) | D (3) | E (13) | F (2) | G (2) | H (1) | I (8) | L (10) | M (6) | N (4) | O (3) | P (5) | R (5) | S (20) | T (11) | U (4) | V (2) | W (5) | Z (1)
501(c)(6)
Approval given by the Internal Revenue Service (IRS) granting exemption from federal income tax to a business league, under Section 501(c)(6) of the Internal Revenue Code. Trade Associations and professional associations are considered to be business leagues. The business league must be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. No part of its net earnings may inure to the benefit of any private shareholder or individual and it may not be organized for profit or organized to engage in an activity ordinarily carried on for profit.
Adaptive Reuse
The process of adapting old structures for purposes other than those initially intended.
501(c)(3)
Approval given by the Internal Revenue Service (IRS) granting exemption from federal income tax to a nonprofit organization, under Section 501(c)(3) of the Internal Revenue Code. Donations to such organizations are tax deductible. The organizations described in 501(c)(3) are commonly referred to under the general heading "charitable organizations."
Amortization
The allocation of a lump sum amount to different time periods, particularly for loans and other forms of finance, including related interest or other finance charges.
Angel Investor
An individual investor who provides equity investment to start-up businesses.
Apportionment
To distribute or allocate proportionally; divide and assign according to a rule of proportional distribution. Affiliated multi-state corporations may file single, separate Rhode Island corporate tax returns or file a consolidated return. In either case, the corporate net income/net worth is subject to Rhode Island apportionment using the average of a three-factor formula (property, receipts, and payroll). See more at Economic Development Corporation
Assessed Valuation
the monetary worth of a property for the purposes of taxation. Total assessed valuation denotes the sum of the monetary worth of all taxable properties within a jurisdiction.
Base Industry
Also known as "export" or "primary" industries, base industries sell or export their products and services outside the community and bring new dollars into the community, increasing the total dollars that circulate within the community and that are spent on non-base industries.
Bid Process

The process by which a business proposes a price to perform a service or provide a product. A competitive bid process helps ensure the best possible price from among several qualified providers. In the City of Providence, the bid process is managed by the City's Purchasing Department, which issues Requests for Proposals (RFPs), Requests for Information (RFIs) or Invitations to Bid when the City requires particular products or services expected to result in an expenditure of $5,000.00 or more. Click here for more information about the bid process for the City of Providence.

Board of Contract & Supply
The Board of Contract and Supply is empowered by the City of Providence with advertising, overseeing and administering all procedures for purchases exceeding $5,000.00.
Bond
A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
Brownfield
Commercial or industrial sites that are abandoned or under-utilized and have suspected or confirmed environmental contamination.
Business Climate
Refers to the environment of a given community as it pertains to the operation of a business; usually includes tax rates, attitudes of government toward business, and availability of resources.
Business Creation
Economic development strategy that focuses on encouraging the formation of new companies that will grow and remain in the community.
Business Improvement District (BID)
Legal entity formed by property and business owners where an assessment or a tax is levied for capital or operating improvements as a means of supplementing city funding. The district is created by the public law or ordinance but is administered by an entity responsible to the district's members or to the local governing body. Some states authorize non-governmental, non-profit corporations. Recent BID programs include economic and social development, transportation, parking management, and conversion of redeveloped commercial buildings for residential use.
Business Incubator
Entity that nurtures and supports young companies until they become viable, often providing them with affordable space, technical and management support, equity and long-term debt financing, and personnel.
Business Liaison
City of Providence representative available to help business owners navigate and gain access to City resources to assist with business startup or growth. For more information about City of Providence Business Liaisons, click here.
Business Loan
Debt assumed by a business that must be paid back with interest over time.
Business Plan
Formal business document outlining a set of business goals and the planned activities to reach those goals.
Business Retention
The efforts of a city, town or state government designed to encourage local companies to remain in their present locations. Can include helping companies cope with changing economic conditions and providing access to resources to help with growth and expansion.
Buy Providence
City of Providence-run promotional program that encourages people to purchase goods and services from Providence businesses, especially during the holiday season.
Capacity Building
Developing the ability of a community-based neighborhood organization to effectively design economic development strategies through technical assistance, networks, conferences, and workshops.
Central Business District (CBD)
The central business district of a locality. Usually this is an area with the highest concentration of businesses, including financial institutions, shops, offices, theaters, and restaurants.
Certificate of Good Standing
Documentation from State and City tax authorities that certifies a business has no overdue tax-related liability. This is a requirement for those participating in some City of Providence tax incentive and loan programs.
Certified and Preferred Lenders Program
U.S. Small Business Administration program that encourages highly active and expert lenders to provide funds to borrowers.
Certified Development Company (CDC)
The originating and administrating body for Small Business Administration (SBA) 504 loans. The program provides long-term, fixed-rate financing to small businesses to acquire real estate, machinery, and equipment for the expansion of business or modernization of facilities.
Clusters
Collocation of firms from the same or similar industries to foster interaction as a means of strengthening each other and enhancing a community's economic advantages.
Community Development Block Grants (CDBG)
A system of unified block grants under which communities with more than 50,00 people are entitled to receive funding while other communities may apply for discretionary funding. Its purpose is to encourage more broadly conceived community development projects and expand housing opportunities for low- and moderate-income persons. The three primary goals of CDBG are to serve low- and moderate-income people, to eliminate slums and blight, and to address other community development needs that pose a serious and immediate threat to the health and welfare of the community. This program has provided significant support for economic development projects.
Community Development Corporation (CDC)
Organizations, typically non-profit 501 (c) (3)s, that can obtain federal and private support. They are governed by local residents, businesses, and community leaders through a board of directors that is in most cases elected from the CDC membership or the community. Some CDCs perform only economic development services, but most work only on housing issues. Those active in economic development provide technical assistance and financing. Bank-sponsored community development corporations are a way for banks to contribute to economic revitalization by investing in local businesses and real estate investment projects that benefit low- and moderate-income groups. A community can establish a bank CDC by working with one or more local banks, the Federal Reserve, the Comptroller, and its respective state financial institutions' regulators. In the case of consortium bank CDCs, where several banks join together, the investors do not have to be just local banks. Bank CDCs can purchase, construct, or rehabilitate property.
Community Development Financial Institution (CDFI)
Specialized financial institution that works in market niches that have not been adequately served by traditional financial institutions. CDFIs provide a wide range of financial products and services, including mortgage financing, commercial loans, financing for community facilities, and financial services needed by low-income households. Some CDFIs also provide technical assistance. To be certified as a CDFI by the CDFI Fund of the Department of the Treasury, an institution must engage in community development, serve a targeted population, provide financing, have community representatives on its board, and be a non-governmental organization.
Community Development Venture Capital
Capital made available through funds created by local communities for the purpose of making venture capital accessible to entrepreneurs in low-income areas.
Construction Loan
Funds borrowed to build or renovate a structure.
Conventional Lender
Traditional bank or credit union.
Customized Training
Learning opportunities designed to meet the needs of a specific employer or group of employers. Often offered to local businesses by City or State government as part of a business attraction and retention strategy.
Demand-side Theory of Development
Explanation of economic development that focuses on discovering, expanding, and creating new markets; forming new businesses; nurturing indigenous resources; and involving government in the economy.
Department of Housing and Urban Development
Federal agency that oversees housing and urban development policies, regulates public and affordable housing and provides grants and loans for cities, counties and individuals for housing and economic development.