The New Markets Tax Credit Program (NMTC Program) helps economically distressed communities attract private investment capital. The National Urban League and Stonehenge Community Development have developed a strategic alliance to deploy NMTC allocations; thus far, $900 million has been deployed and invested in 75 transactions in 20 states. This 39% federal tax credit, claimed over  seven years, helps to fill project financing gaps by enabling investors to make larger investments, than would otherwise be possible, in specialized financial institutions called Community Development Entities (CDEs). Each CDE receives a tax credit authority (allocation) which can then be re-invested (deployed) into low-income communities.

Communities benefit from the jobs associated with these invest­ments, as well as greater access to public facilities, goods, and services such as manufacturing, food, retail, housing, health, technology, energy, education, and childcare. From the Program’s inception through FY 2012, $31.1 billion in New Markets Tax Credits have been invested in low-income communities. Investments range in size from $3mm to $25mm. For more information on the federal NMTC Program, please visit www.cdfifund.gov.
 
Investments are made based on the following criteria:

• Small business and non- profit community service businesses that have significant minority impact in areas of greater distress
• Significant focus placed on supporting minority owned businesses
• Targeted investments are in projects that are owner-occupied real estate and need working capital financing
• Investments are made in low income communities where the minority population is significant

The alliance has been successful in receiving and deploying $92mm in Florida NMTC and $104mm in Illinois NMTC for 19 Investments that are similar in nature to the ones described above. We have also been successful in receiving $30.757mm in NMTC allocations for business investments in the state of Kentucky. A key component of this initiative is the economic impact that these investments make on the communities in which the projects are located. The following provides highlights of the aforementioned economic impact:

• $285.38mm of federal NMTC allocation and $179.2mm of state allocation invested in 48 projects with an aggregate project size of $1.4 billion
• 10,010 Full Time jobs created/saved with an average wage of $38,50
• Approximately 7,000 construction jobs created
• 100% of funds invested in highly distressed census tracts with an average minority population of 69%
• Primary economic impact for every dollar of NMTC equity generated $19.27 of additional investment, representing consumer spending, business spending and construction expenditures
• Representative transactions include-
  • International Civil Rights Center and Museum- Greensboro, NC
  • Tulane University- New Orleans, LA
  • Clarian Health- Indianapolis, IN