MINNEAPOLIS--(BUSINESS WIRE)--Community Reinvestment Fund, USA (CRF), a nonprofit organization that connects community-based and economic development lenders with the capital resources of Wall Street, today announced it received $77 million in federal New Markets Tax Credit (NMTC) funds. CRF will apply its NMTCs to fund loans to business located in low-income communities across the country.
CRF was one of 99 organizations selected from a pool of 250 applicants to receive an allocation in the eighth round of NMTC awards. CRF is one of three organizations receiving a $77 million allocation, the largest amount awarded to 2010 applicants. Since the program’s inception, CRF has received combined NMTC allocations totaling $674.5 million, making CRF one of the nation’s single largest NMTC allocatees focused solely on business financing.
“At a time when businesses must help drive economic recovery, capital availability continues to be a barrier to investment,” said Frank Altman, president and chief executive officer for CRF. “This NMTC allocation will play a key role in helping us drive capital to businesses so they can expand and begin hiring again.”
Congress reauthorized NMTC as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which brought the entire amount of tax credits allocated this year to $3.5 billion. Applicants had requested more than $25 billion, demonstrating the continued need for investment in low-income communities throughout the country.
The NMTC program is aimed at stimulating private investment in low-income communities by providing tax credits to investors who make qualified equity investments in privately managed community development entities (CDEs). By making an equity investment in an eligible CDE, investors can receive tax credits worth more than 35 percent of the amount invested. The CDE must then use these investments to provide capital for low-income communities, help finance community development projects, stimulate economic growth and create jobs. Industry estimates show that for every $1 gained by NMTCs, award recipients are able to leverage an average of $21 in additional investment from the private sector.
“Community development is leading America out of the recession, and this new allocation of tax credits will help CRF and its partners improve the quality of life for low- and middle-income American families. We are enthusiastic about continuing our work with this landmark program and leveraging NMTC dollars for maximum community impact,” Altman said.
About CRF
Community Reinvestment Fund, USA (CRF), a nonprofit organization and certified Community Development Financial Institution (CDFI), is the nation’s leader in bringing capital to public and private, nonprofit community development lenders through the secondary market for community development loans. Formed in 1988, CRF has injected more than $1 billion into low-income and economically disadvantaged communities around the country to help stimulate job creation and economic development, provide affordable housing, and support community facilities. CRF is headquartered in Minneapolis, Minn. www.crfusa.com.
