COLUMBUS, Ohio, Oct. 12, 2015 /PRNewswire-USNewswire/ -- Finance Fund, a statewide nonprofit community development entity (CDE), was awarded $4 million in round six of the Ohio New Markets Tax Credit (ONMTC) Program administered by the Ohio Development Services Agency. A total of $10 million in tax credit allocation authority is available to Ohio CDEs each year. This funding expands Finance Fund's capacity to provide needed capital and credit to economically distressed communities that lack access to affordable financing. In all six rounds, Finance Fund has received a total of $14 million in ONMTC for a minimum of $35.7 million in investments.
In addition, the U.S. Treasury Department's Community Development Financial Institutions Fund (CDFI Fund) awarded $3 million to Finance Fund Capital Corporation (FCAP), the certified Community Development Financial Institution (CDFI) affiliate of Finance Fund. The CDFI Fund award includes $1 million in Financial Assistance that will be used for small business lending, and $2 million in funding from the CDFI Healthy Food Financing Initiative (HFFI). The HFFI funding enables FCAP to expand its statewide healthy food-focused financing activities to help meet the unique needs of healthy food projects operating in economically underserved communities. FCAP is one of 11 CDFIs nationwide to receive an HFFI award. The CDFI Program awarded a total of $202 million in grants and loans to 195 Community Development Financial Institutions
Finance Fund will apply the ONMTC allocation, in combination with the $55 million in federal NMTC allocation that it received earlier this year, to economic revitalization projects located in in severely distressed communities across Ohio. These communities are traditionally underserved by private sector capital which impedes growth, investment and business expansion in low-income areas. Tax credit allocation authority is awarded to CDEs that sell the credit to investors and use that capital for impactful and catalytic projects. Investors receive a federal tax credit for 39 percent of their investment claimed over seven years.
"The NMTC program is a unique and effective tool that fuels construction of new community facilities, businesses and commercial real estate projects in underserved areas," said Finance Fund President Diana Turoff. "With this new round of ONMTC funding, Finance Fund will continue to demonstrate our strength in meeting the goals of the program statewide."
In addition to Finance Fund, round six ONMTC awardees include: Cincinnati Development Fund ($2 million), Cleveland New Markets Investment Fund II, LLC ($2 million), Chase New Markets Fund ($1 million), and Development Fund of the Western Reserve ($1 million).
For more information visit our website www.financefund.org.
SOURCE Finance Fund
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