Finance Fund Receives $40 Million in New Markets Tax Credit Funding Seeks Proposals to Create Jobs, Revitalize Economically Distressed Ohio Communities
COLUMBUS, Ohio, Feb. 29, 2012 /PRNewswire/ -- Finance Fund, a statewide nonprofit financial intermediary, has received a $40 million New Markets Tax Credit (NMTC) allocation from the U.S. Department of Treasury for projects that will use the funds to revitalize economically distressed communities and create jobs in Ohio.
"Our job is to put this money to work immediately in rural and urban areas through partnership with developers, community leaders, lenders and businesses," said Finance Fund CEO James Klein. "We are seeking proposals now, particularly for projects located in rural Ohio or in the field of health care."
The NMTC program drives investment in communities that have high rates of poverty and unemployment by providing low-interest financing for worthy projects. To schedule an appointment with Finance Fund about a NMTC partnership, call 614-221-1114 x35 to speak with a program officer.
Since 2004, Finance Fund has received seven NMTC awards totaling $200 million. By the end of 2011, Finance Fund used these funds to leverage $336 million on 37 housing, economic development and community facility projects that generated 3,182 full-time jobs and served 1,857 children in Ohio.
"The program brings opportunity to areas in greatest need that might not otherwise have access to capital. It gives Ohioans the chance to start or build a local business, make a living and get access to critical housing, education and retail services in their community," Klein said.
About Finance Fund (FinanceFund.org)
In 2012, Finance Fund celebrates its 25th anniversary as a partner in community empowerment. Throughout Ohio, Finance Fund connects low-income communities with public and private sources of capital and simplifies the complexities of the financing process to help good economic development ideas come to life. Since 1987, Finance Fund and its affiliates have invested more than $195.5 million in housing, economic development, and community facility projects leveraging over $1 billion. These investments were accomplished through 2,688 awards to community-based organizations throughout the state. Partnerships enabled the development of 15,439 units of affordable housing, 16,728 direct jobs, and 3,036 early care and education classrooms for 69,497 children benefiting the lives of more than 125,000 Ohioans.
About New Markets Tax Credits (NMTC)
The NMTC program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in investment vehicles known as Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. CDEs must apply to the Treasury Department's Community Development Financial Institutions Fund (CDFI Fund) to compete for this allocation authority. The 70 organizations receiving awards in 2012 were selected from a pool of 314 applicants that requested over $26.7 billion. They are headquartered in 29 different states and the District of Columbia; but have identified principal service areas that will cover nearly every state in the country, as well the District of Columbia.
SOURCE Finance Fund