In 2006 the Washington, DC‐based New America Foundation commissioned a study by Joel Kotkin and Delore Zimmerman to develop an economic strategy for the American Heartland. One of the major recommendations of this work – Rebuilding America’s Productive Economy: A Heartland Development Strategy ‐‐ is the formation and capitalization of the Heartland Development Bank.

In 2007, Praxis Strategy Group was competitively awarded a Small Business Innovation Research project from USDA to determine the feasibility of organizing, capitalizing and managing the Heartland Development Bank. The Phase 1 work has been completed and Phase 2 will commence in February 2009.

In September of 2008, the New America Foundation hosted an event in Washington, DC to highlight the Heartland Development Bank and its potential role in building the productive economy through strategic investments in infrastructure and infrasystems. NAF’s position is that, from a macroeconomic standpoint, the future financial infrastructure of the United States will be better served by a series of smaller banks that carry out specialized and/or regional functions.

Praxis Strategy Group and the New America Foundation are now working to finalize the next steps for organizing, capitalizing and managing the Heartland Development Bank.

This is not a competitor of or duplicative of the National Infrastructure Bank as proposed by Senators Dodd and Hagel. As currently configured, the NIB will invest in big‐dollar public works and will not be self‐sustaining with no capital and no ability to leverage funds. The Heartland Development Bank …. invests in productive infrastructure and infrasystem assets in energy, water, manufacturing, and science and technology that contribute to making our nation more innovative and more competitive.