Allocation from U.S. Treasury to Stimulate Growth and Revitalization in Low-Income Communities
NEW YORK, March 2, 2011 /PRNewswire-USNewswire/ -- Nonprofit Finance Fund (NFF) has been awarded $21 million in a New Markets Tax Credit allocation (NMTC) to support community development projects in low-income areas throughout the U.S. NFF will use its allocation to provide financing to help small and mid-sized nonprofit organizations better serve their communities.
"The economic recession is still a very real issue for many nonprofits. An increase in the demand for services has led to an increased need for assistance to support their infrastructure and operations," said Norah McVeigh, Managing Director of Financial Services at NFF. "The availability of the NMTC allocation will attract economic investment to areas and projects that need it most."
The New Markets Tax Credit program provides significant incentives for investments in traditionally hard-to-finance projects. The program rewards investors with tax credits totaling 39% of the total financing for select projects, over a period of seven years. NFF has created an NMTC product that provides attractive, flexible loan terms and an equity-equivalent feature that gives nonprofits the ability to affordably complete facility improvements.
NFF will work primarily on projects in low-income urban areas that will expand and improve services for community members and generate jobs. It will also seek to finance projects that create environmentally sustainable outcomes.
The Department of Treasury has awarded $3.5 billion to 99 organizations nationwide under the 2010 New Markets Tax Credit program. NFF was selected from a pool of 250 applicants that applied for more than $23.5 billion in NMTCs. NFF has been awarded more than $150 Million in New Markets Tax Credit allocations over the past four years to help broker high-impact investments that strengthen nonprofit organizations.
ABOUT NONPROFIT FINANCE FUND (www.nonprofitfinancefund.org)
Nonprofit Finance Fund (NFF) is a national leader in nonprofit, philanthropic and social enterprise finance. Founded in 1980, NFF provides loan financing, access to capital and direct advisory services that build the capacity and the financial health of nonprofits. A leading community development financial institution with over $80 million in assets, NFF has provided over $235 million in loans and access to additional financing via grants, tax credits and capital in support of over $1 billion in projects for thousands of nonprofit clients nationwide. NFF has a staff of more than 75 serving nonprofits nationally from offices in Philadelphia, New York City, Newark, New Jersey, Boston, Detroit, Washington, D.C., San Francisco, and Los Angeles.
SOURCE Nonprofit Finance Fund