Treasury Department Announces $5 Billion in Awards to Spur Investment in Economically Distressed Communities
NCB Capital Impact Awarded $90 Million in New Markets Tax Credits for a Total of $409 Million To Date
CHICAGO, Oct. 30 /PRNewswire-USNewswire/ -- Treasury Secretary Tim Geithner and the Director of Treasury's Community Development Financial Institutions Fund, Donna J. Gambrell, today announced billions of dollars in awards to spur private sector investment in communities facing economic challenges. The announcement was made at Greater West Town Community Development Project, a job training center that has benefited from funding under the New Markets Tax Credits (NMTC) Program, to highlight the impact of this program. NCB Capital Impact was awarded $90 million in NMTC allocations for disbursement to community health care centers, charter schools, and other innovative development projects in low-income communities across the nation.
"The New Markets Tax Credit Program is promoting private-sector investment in our nation's communities and is helping to stimulate economic growth, create jobs and bringing new opportunities to Americans most in need," commented Donna Gambrell. "This innovative federal program is helping to finance numerous businesses and real estate projects across the country -- projects that may not have been financed if not for New Markets Tax Credits."
Since July 2005, NCB Capital Impact has completed 29 NMTC transactions totaling $229.4 million and has used these funds to support health, housing and education facilities that are anchor institutions in low-income areas. These transactions have shown a demonstrated impact on rural and urban communities nationwide, leveraging over $500 million in capital resulting in: creation/retention of 3,542 permanent jobs and 2,157 temporary jobs; 1,015,000 square feet of community facilities space; 3,750 school seats for children; and 198,000 annual patient visits for medically underserved.
"These New Markets Tax Credit transactions will help NCB Capital Impact and its partners create about 1,000 new jobs, 3,000 new school seats for low-income children, 100 units of workforce housing, and provide 25,000 working families with quality, affordable health care nationwide," said Terry Simonette, president and CEO of NCB Capital Impact. "This allocation is a critical financing tool to build economic security in communities that need it most."
This award increases NCB Capital Impact's total NMTC allocations to $409 million. As of September 2009, the organization had disbursed $229.4 million of $319 million in allocations. They are expected to complete disbursement of all previous allocations by the first quarter of next year.
"The NMTC financing we received from NCB Capital Impact was critical for our new 54th Street campus," said Judy Burton, CEO of The Alliance for College-Ready Public Schools. "It will have a significant impact in helping to redevelop the area and provide a high quality education to hundreds of low-income children in South Los Angeles."
The NMTC Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified 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. Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities. The 32 organizations to receive NMTC allocations under ARRA were selected through a competitive application and rigorous review process.
In 2008 alone, NCB Capital Impact disbursed a record $208.1 million for education, health care and affordable homeownership programs that benefit low- and middle-income communities nationwide. Despite the economic downturn that forced the largest lending institutions in the country to reduce access to capital for those most in need in 2008, NCB Capital Impact has continued investing in traditionally higher-risk communities thanks to the non-profit organization's innovative approach to community lending that includes provisions for technical assistance, policy outreach and public/private partnerships that are necessary for building sustainable communities.
About NCB Capital Impact
NCB Capital Impact, the non-profit affiliate of NCB, provides financial services and technical assistance to create more affordable homeownership, long-term supports innovations, and facilities for health care centers and charter schools. To learn more about NCB Capital Impact, and its programs and initiatives in advancing education, affordable housing, health care and long-term care for low- to moderate-income individuals, visit www.ncbcapitalimpact.org.
About New Markets Tax Credits
The New Markets Tax Credit Program promotes social investment in underserved communities by permitting taxpayers to receive a credit against federal income taxes for making qualified equity investments in community development entities. To date, over $14 billion of private-sector capital has been invested through the NMTC Program into urban and rural communities throughout the country. Data reported through 2008 shows that $12.7 billion dollars of NMTC capital has been invested into approximately 2,000 businesses and real estate developments. A complete list of the organizations selected and additional information on the NMTC Program can be found on the CDFI Fund's web site at: www.cdfifund.gov.
SOURCE NCB Capital Impact