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- 2011 News Releases
- Feb. 25, 2011 - CRF Receives $500,000 Loan Servicing Grant from the Ford Foundation
Feb. 25, 2011
Community Reinvestment Fund, USA Helps Fast-Track Jobs and Economic Recovery
With $77 Million New Markets Tax Credit Allocation
FOR IMMEDIATE RELEASE
For more information contact:
Community Reinvestment Fund, USA
Federal allocation provides vital capital for small businesses
CRF is one of the nation’s largest NMTC recipients, with nearly $675 million in total allocations
MINNEAPOLIS – Feb. 25, 2011 – Community Reinvestment Fund, USA (CRF), a non-profit organization that
connects community-based and economic development lenders with the capital resources of Wall Street, today
announced it received $77 million in federal New Markets Tax Credit (NMTC) funds. CRF will apply its NMTCs to fund loans to business located in low-income communities across the country.
CRF was one of 99 organizations selected from a pool of 250 applicants to receive an allocation in the eighth
round of NMTC awards. CRF is one of three organizations receiving a $77 million allocation, the largest amount
awarded to 2010 applicants. Since the program’s inception, CRF has received combined NMTC allocations totaling
$674.5 million, making CRF one of the nation’s single largest NMTC allocatees focused solely on business financing.
“At a time when businesses must help drive economic recovery, capital availability continues to be a barrier to
investment,” said Frank Altman, president and chief executive officer for CRF. “This NMTC allocation will play a key role in helping us drive capital to businesses so they can expand and begin hiring again.”
Congress reauthorized NMTC as part of the Tax Relief, Unemployment Insurance Reauthorization and Job
Creation Act of 2010, which brought the entire amount of tax credits allocated this year to $3.5 billion. Applicants had requested more than $25 billion, demonstrating the continued need for investment in low-income communities throughout the country.
The NMTC program is aimed at stimulating private investment in low-income communities by providing tax
credits to investors who make qualified equity investments in privately managed community development entities
(CDEs). By making an equity investment in an eligible CDE, investors can receive tax credits worth more than 35 percent of the amount invested. The CDE must then use these investments to provide capital for low-income
communities, help finance community development projects, stimulate economic growth and create jobs. Industry
estimates show that for every $1 gained by NMTCs, award recipients are able to leverage an average of $21 in
additional investment from the private sector.
“Community development is leading America out of the recession, and this new allocation of tax credits will help
CRF and its partners improve the quality of life for low- and middle-income American families. We are enthusiastic
about continuing our work with this landmark program and leveraging NMTC dollars for maximum community impact,” Altman said.
Community Reinvestment Fund, USA (CRF), a non-profit organization and certified Community Development
Financial Institution (CDFI), is the nation’s leader in bringing capital to public and private, non-profit community
development lenders through the secondary market for community development loans. Formed in 1988, CRF has
injected more than $1 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, Minn. www.crfusa.com.