Secretary Geithner Points to NCB Capital Impact as Model for Success in Building Strong Local Economies
WASHINGTON, May 27 /PRNewswire-USNewswire/ -- The U.S. Department of The Treasury announced $90 million in New Markets Tax Credit allocations for NCB Capital Impact today at a press conference where Treasury Secretary Timothy Geithner highlighted the organization's innovative approach to effective investment as a model for sustainable economic development.
Under the American Recovery and Reinvestment Act (ARRA), NCB Capital Impact was one of 32 organizations to receive a combined $1.5 billion in New Markets Tax Credits, which are designated for community development organizations and are designed to save and create jobs and spur economic development in distressed communities.
"These New Market Tax Credit transactions will help NCB Capital Impact and its partners create 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."
Since July 2005, NCB Capital Impact has closed New Markets Tax Credit transactions totaling $205 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 for underserved populations in terms of permanent and temporary jobs, units of affordable housing, and funding for education and healthcare programs.
Secretary Geithner pointed to NCB Capital Impact's partnership with Media and Technology Charter High (MATCH) in Boston as an example of successful implementation of New Markets Tax Credit allocations. The New Markets Tax Credit finance package coordinated by NCB Capital Impact allowed the school to reduce its debt service costs by 40 percent and establish its innovative MATCH Corps program, creating new jobs in the community and improving education delivery by involving college graduates as tutors. As a result, MATCH students have consistently outperformed each of the other 32 public, open admission schools in Boston that serve students in grades 9 to 12 on both math and English competency exams.
"Thanks to NBC Capital Impact and our New Markets Tax Credit deal, the MATCH school kids not only get access to a first-rate facility, but also to tutors who push them incredibly hard, enough to become the first in their families to go on to earn college degrees," said Michael Goldstein, CEO of MATCH.
The New Markets Tax Credit 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 New Markets Tax Credit allocations under ARRA were selected through a competitive application and rigorous review process.
In 2008, 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.
For more information about NCB Capital Impact's approach to innovative community lending in 2008, please review its annual report at www.ncbcapitalimpact.org/annualreport.
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.
SOURCE NCB Capital Impact