On paper, 2024 seems like a pretty good year for the U.S. economy. It’s expected to grow up to 2.7% per S&P Global Ratings by year’s end. Consumer spending and business investment are up too and projected to hit 2.4% and 4.2% respectively, Deloitte predicted. And inflation should drop to an annual average of 2.4% Morningstar noted. But as we know all too well, numbers can be deceptive. Despite our robust economic development, about 1,000 counties representing almost a fifth of our nation’s population have been left behind. Even though they’ve seen strong job creation and business growth in the last three years, they’re lagging the rest of the nation significantly. More troubling is the economic gap that’s widening between their growth and that of the rest of our nation, a new analysis by the Economic Innovation Group revealed.
Job growth in left-behind counties must be compared to those in healthy counties. They still face a deficit of 1.8 million fewer jobs than they had in 2000. (Data: Economic Innovation Group)
Why are these counties in economic decline? They’re still recovering from systemic policies, practices and disinvestment that have hindered their ability to realize broader economic gains for decades. Think unfair lending practices, homeownership barriers, displacement and exclusion. So today, they’re in dire need of affordable housing and childcare, quality jobs, business investment, accessible public transportation and more. That’s where we come in as a CDFI that supports affordable housing, homeownership, small minority-owned businesses, daycare centers, nonprofit organizations, charter schools and transformative real estate projects. Thanks to a $33 million award this month from the U.S. Department of the Treasury’s CDFI Bond Guarantee Program, which came through our partnership with the Opportunity Finance Network, we can step up our groundbreaking projects and programs to offer even more much-needed support to traditionally underserved communities.
Establishment growth is a sign of economic health and vitality, but in left-behind counties it may be driven more by restructuring rather than new growth or significant expansions. (Data: Economic Innovation Group)
We are fortunate to have received this generous award, but we also know that we work hard at NJCC to amplify all the opportunities that come our way. If anything, our secret sauce is good old-fashioned persistence. Our team is determined, passionate and proactive about our mission. They develop innovative and proactive programs to target communities’ most serious issues. Most significantly, they nurture and sustain a highly visible presence in these areas to build critical relationships with stakeholders and residents. As that old saying goes, “the harder you work, the luckier you get,” and we were very lucky this year for several reasons. At $498 million, the Treasury’s CDFI Bond Guarantee Program issuance was the largest in its 14-year history. Of that, OFN’s $173 million award was the largest it has ever received as well. We are one of seven CDFIs in the OFN network sharing this issuance, and we are honored to note our $33 million allocation was the most generous share—a true testament to the creative and diligent work of our team and a true boost for those we serve. We know from decades of experience that when communities have equitable access to capital, they thrive. This record-breaking bond issuance isn’t just about today; it’s about building a brighter future for all the communities we serve to thrive for years to come, as I noted in an interview with NJBiz. We look forward to updating you on the work this award will enable and the success stores for our constituents it will spur.
The Heartland has the highest concentrations of left-behind counties, as shown at left. Many counties where post-pandemic unemployment levels have not recovered are also in the Heartland, as shown at right. (Data: Economic Innovation Group)