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Financial Assistance Tools <br /> As previously mentioned the functions of an EDA is two-fold, its goals are to <br /> market the City as a place for businesses to develop, and it can also act to assist business <br /> meet financial gaps in their efforts to locate within the City. Essentially what this means <br /> is that EDA's and Cities have the power to remove portions of the financial burden <br /> placed on businesses in their efforts to move into your City, EDA's can work to close <br /> financial gaps that may exist. <br /> There are instances where business would like to develop in a City,but the cost of <br /> doing so prevents it. In these circumstances Cities and EDA can use their power to <br /> provide money or cover certain costs in order to close these gaps, provided a certain test <br /> has been passed. This test is what is known as the "but-for" test. <br /> The DTED Economic Development Handbook provides this definition of the But <br /> for Test; "A statutory requirement that a municipality, in approving creation of a tax <br /> increment district, must find that the "proposed development or redevelopment, in the <br /> opinion of the municipality, would not reasonably be expected to occur solely through <br /> private investment within the reasonably foreseeable future." The municipality must also <br /> find that the use of TIF will increase the market value of the site over that which would <br /> occur without tax increment financing." <br /> What the "But For Test" seeks to is create a level of responsibility to the use of <br /> public assistance. By meeting the burden of proof set forth in the "But For Test" Cities <br /> are able to demonstrate the fact that they are not in the business of giving money to <br /> private industry without receiving something in return. The burden of proof in the "But <br /> For Test" is whether or not the project would be possible if the assistance was not <br />