The article substantiates that financial and credit instruments are an effective means of overcoming the capital deficit, providing accelerated financing of the construction of critically needed infrastructure facilities, which contributes to improving access to public services, creates conditions for the economic activity of enterprises and contributes to solving a wide range of problems with local self-government bodies face. The authors single out financial and credit instruments for financing local economic development, in particular: bond loans, bank loans, loans from international financial organizations, local guarantees, a revolving fund and crowdfunding. It was determined that the main areas of socio-economic development of regions and cities, which are financed with funds from municipal bond loans, are education, transport, communal economy, environmental protection, social security, industrial development, construction of highways, bridges, tourist infrastructure and facilities sphere of services. Particular attention was paid to lending, in particular the “Affordable 5-7-9” program, which allowed business entities to obtain the necessary financial resources for existence, because such programs contribute to the creation of jobs and increased tax revenues; however, their effectiveness depends on the availability of sufficient financial resources at the local level and access to them by entrepreneurs. The research analyzed the segment of commercial banks that were actively involved in lending to business entities in terms of providing loans to cover working capital needs, which is important for maintaining the company’s liquidity. The proposed measures are aimed at increasing the efficiency of financial management at the local level and ensuring sustainable development through the attraction of credit resources. The directions of attracting financial resources from foreign countries, banks and international financial organizations for the implementation of investment projects, in particular by the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, the German Credit Institution for Reconstruction and the European Investment Bank, were analyzed, and it was determined that the funds of such organizations are financed investment, innovation, infrastructure and other support, restoration and development projects that are of strategic importance and contribute to access to long-term financing and increase the stability of the energy system. It is substantiated that the revolving fund is an innovative mechanism that feeds the economy of the region, and the importance of crowdfunding in financing local economic development is also investigated, as it allows attracting financial resources from a large number of people who support various projects and initiatives. 

bond loans, bank loans, local guarantees, revolving fund, crowdfunding