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Exploring the Legal Definition of Local Economic Area
Definition & Meaning
A local economic area refers to a specific geographic region identified by the Small Business Administration (SBA) that is adjacent to a Certified Development Company's (CDC) operational area. This area is located in a different state from where the CDC is incorporated but is part of a local trade area that is connected to the CDC's existing or proposed area of operations. For example, a city that straddles a state line or a metropolitan area that crosses state boundaries can be considered a local economic area.
Table of content
Legal Use & context
The term "local economic area" is primarily used in the context of business loans and development programs, particularly those administered by the SBA. It is relevant in fields such as business law and economic development. Understanding this term is essential for organizations seeking to expand their operations and access funding through the CDC program. Users can manage related forms and procedures through resources like US Legal Forms, which offers templates drafted by legal professionals.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A CDC incorporated in New York may identify a local economic area in New Jersey that is adjacent to its operational territory, allowing it to provide loans to businesses in that area.
Example 2: A metropolitan statistical area that includes cities in both California and Nevada could serve as a local economic area for a CDC based in California. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Local Economic Area Definition
California
May include areas that are part of larger metropolitan regions.
Texas
Focuses on trade areas that span multiple counties.
New York
Emphasizes proximity to urban centers across state lines.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Area of Operations
The specific geographic area where a CDC conducts its business.
Local economic area is adjacent but in a different state.
Trade Area
A region where businesses compete for customers.
Local economic area is a subset of a trade area that meets specific criteria.
Common misunderstandings
What to do if this term applies to you
If you are a business owner looking to expand into a local economic area, consider the following steps:
Identify the local economic area that aligns with your business goals.
Consult with a CDC to understand funding options available in that area.
Utilize resources like US Legal Forms for necessary legal documents and templates.
If your situation is complex, seek advice from a legal professional.
Find the legal form that fits your case
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