The CDFI Fund recently announced that $5 billion has been allocated under the New Markets Tax Credits Program (NMTC Program), a move set to catalyze investment and economic growth in both urban and rural areas. In the 2022 round of the NMTC Program, 102 Community Development Entities (CDEs) emerged as the beneficiaries of these tax credits. These entities were handpicked from a competitive group of 197 applicants that requested an aggregate total of $14.8 billion in tax credit allocation authority. The geographic spread of the award recipients is impressive, spanning 36 states and the District of Columbia. A noteworthy aspect of this allocation is the emphasis on rural upliftment. Over a fifth of the investments are designated for rural locales, translating to an estimated $1 billion in NMTC investments directed towards non-metropolitan counties.
Among the CDEs receiving awards, three Alliance members deserve special mention for their outstanding contributions and commitment to community development: the Black Business Investment Fund, the South Carolina Community Loan Fund, and the Texas Mezzanine Fund. Their recognition is not just a testament to their dedication but also a beacon of hope for other entities striving to make a difference.
With the recent allocation, the cumulative funding via the NMTC Program has surpassed $76 billion. Over time, every dollar from the federal government under this program has traditionally attracted eight times that amount from private sectors. As of the conclusion of the 2022 fiscal year, entities benefiting from NMTC Program awards have channeled in excess of $62.9 billion into ventures within underserved communities and businesses. This funding has directly contributed to the establishment or preservation of over 857,000 employment opportunities and facilitated the development or refurbishment of approximately 239 million square feet in commercial property.