One of a series, this handbook is designed to assist individuals involved in area development to gain knowledge and understanding of the public and private sources of funds for support of various area development activities. National, regional, and local private sector sources of development capital are examined to give an overview of business finance including private debt finance, the concept of operating leverage, the nature of operating debt and its cost, credit instruments, corporate debt, private equity finance, investment banking, the regulation of securities issues, the supply of new equity financing by institutional investors, specialized financial institutions, and other potential sources of private capital. Attention is accorded to local commercial banks and savings institutions, among others, as sources of development capital. Industrial development bonds, state loans and guarantees, and business development corporations are examined, along with the programs of the Small Business Administration and other public sources. Institutional devices for dealing with area development finance, such as local development corporations, community development corporations, housing development corporations, small business investment corporations, and various types of cooperatives, are referenced as vehicles to be considered both for their special purposes and as parts of a comprehensive area development finance structure. (Author/CM)