June 16, 2015
MINNEAPOLIS - June 15, 2015 - Community Reinvestment Fund, USA (CRF), a non-profit organization that improves the lives of disadvantaged people and strengthens distressed communities through innovative finance, today announced it received $55 million in federal New Markets Tax Credit (NMTC) funds. Since the program's inception in 2001, CRF has received combined federal NMTC allocations totaling $804.5 million.
CRF was one of 76 organizations selected from a pool of 263 applicants across the country to receive tax credit allocation authority under the 2014 New Markets Tax Credit Program. More than $3.5 billion was awarded to stimulate investment and economic growth in low-income urban neighborhoods and rural communities nationwide.
"This is a highly competitive process and we are pleased to have received an allocation this year," said Frank Altman, president and chief executive officer for CRF. "Our NMTC allocation provides an additional tool for our organization to make high impact investments in businesses and non-profits that create significant positive impact in severely distressed areas as we strive to deliver more capital to the people and communities that need it most."
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). Since the program's inception, New Markets Tax Credit investments are estimated to have created nearly 600,000 new jobs and supported the construction of more than 160 million square feet of retail, manufacturing, and office space. As the communities benefitting from these investments develop, they become more attractive to investors, creating a ripple effect that spurs more investment.
CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority.
Community Reinvestment Fund, USA (CRF), a non-profit organization and certified Community Development Financial Institution (CDFI), is a national leader in bringing capital to underserved areas. Founded in 1988, CRF has injected more than $1.8 billion into low-income and economically disadvantaged communities around the country to help stimulate job creation and economic development, provide affordable housing, and support community facilities. CRF is headquartered in Minneapolis, MN. For more information, visit www.crfusa.com
# # #
Posted by: CRFUSA