Hear from our founder
Frank Altman, CRF’s President and CEO, was instrumental in the development of the CRF NMTC Business Loan program. Read more
A pioneering way to finance businesses and community facilities
Injecting needed capital into low-income communities for business and community facilities
Community Reinvestment Fund, USA (CRF) offers one of the nation’s most successful programs using the federal New Markets Tax Credit (NMTC) program. New Markets Tax Credits revitalize low-income, distressed communities by creating public-private partnerships that provide much-needed capital to strengthen businesses and community facilities.
The NMTC program connects:
- Business owners in highly distressed low-income communities who receive below-market rates for loans they could not obtain through conventional financing.
- Community Development Entities (CDEs) that receive tax credits to make qualified investments in low-income communities.
CRF founder Frank Altman helped to pioneer the NMTC program, and since its inception in 2000, we’ve received over $869.5 million in allocations, making us the single largest recipient focused on business financing.
Our NMTC allocations have helped us:
- Fund nearly 400 NMTC projects.
- Create or retain more than 35,000 jobs around the country.
- Serve 1.6 million people annually at community facilities in low-income communities.
- Offer flexible terms including interest rates at least 50% below market rates.
- Assist borrowers in highly distressed areas with loans from $8 million to $25 million.
Who New Markets Tax Credit loans are for
The NMTC program helps organizations looking to expand their footprints in economically disadvantaged areas through facility expansion, acquisition and installation of equipment, and working capital. The goal of these organizations is to enhance both their businesses and the community.
Recent projects include:
Jennifer K. Novak
Senior Vice President of Capital Markets
Jennifer Novak is a seasoned financial professional with proven experience to lead, manage and implement complex financial transactions. With a lengthy track record of building and maintaining relationships with tax credit investors, resulting in placement of tax credits totaling over $200 million, Novak brings nearly 25 years of finance experience to CRF.
Novak oversees CRF’s New Markets Tax Credit and CDFI Bond Guarantee Programs. She is also responsible for CRF’s capital raising, structuring and compliance efforts for both of these federal programs, which total more than $1 billion in capital activity directed toward low income communities.
Novak is also responsible for outreach, guidance, technical assistance training and education to Community Development Entities and CRF’s lending referral partners. Prior to her tenure at CRF, Novak worked at Piper Jaffray & Co. She structured tax-exempt bond transactions for municipalities, school districts, 501(c)(3) organizations, small businesses, states, and state-level issuers. She has a Bachelor of Arts from the College of Saint Benedict and a Master of Business Administration (MBA) from the University of St. Thomas.
CRF founder helps launch—and lead—New Markets Tax Credit program
An interview with Frank Altman
Even before President Bill Clinton signed the New Markets Tax Credit legislation into law in December 2000, CRF founder Frank Altman was a driving force in the program. Altman joined forces with a handful of other community development organizations in the mid-1990s to develop and promote the concept of a tax credit to foster job growth, community facilities, and neighborhood revitalization. The group’s work and advocacy led to the launch and successful implementation of the New Markets Tax Credit (NMTC) program.
In 2001, Altman served as the first president of the New Markets Tax Credit coalition, and has been a program advocate ever since. CRF is a leader in the NMTC field, receiving more than $749 million in allocations since 2001.
Where did the idea for the New Markets Tax Credit program begin?
Altman: “As a coalition, we saw the success of the Low Income Housing Tax Credit in spurring quality affordable housing, but it was limited to housing units. We wanted to create a similar public-private partnership to inspire investment, but using a more flexible vehicle aimed at rejuvenating entire communities.”
What was the coalition’s initial vision?
Altman: “The idea was that community development is broader than affordable housing. It’s about creating jobs, adding community facilities, and revitalizing neighborhoods comprehensively.”
What was the unmet need that prompted the program?
Altman: “In the late 1990s, even though the U.S. economy was booming, many areas of the country were still in trouble, not growing at a similar pace. These were areas where there was disinvestment: Real estate and buildings abandoned. Higher unemployment. Lack of services.”
How does the New Markets Tax Credit address these issues?
Altman: “We needed to overcome the perception that low-income areas are not the place to invest. The tax credit helps reduce the risk to an investor. We wanted to have a flexible tax credit that could be used in a variety of ways to maximize investment in low-income communities.”
What results has the program achieved?
Altman: “New Markets Tax Credits help change the lives of people. Many groups have used the program for human services, education, or healthcare facilities that create jobs and also help people get skills, improve their health, and get a quality education. The credit has definitely gained in popularity over the years and has injected tens of billions of dollars into disadvantaged communities and deserving businesses.”
What sets New Markets Tax Credits apart from other finance and community development tools?
Altman: “The key to success is that we’ve been able to get the program renewed every year, and it’s been supported on a bipartisan basis. As part of the recent economic stimulus, President Obama increased the allocation. It demonstrated the ability of New Market Tax Credit allocatees to get the money out into the communities where it’s needed.”
What has surprised you about the program?
Altman: “People were worried initially that there wouldn’t be enough applicants for the credit, but from the very beginning, we’ve seen demand run at least ten times greater than allocations. The credit has been extremely successful in attracting capital and making a positive difference in communities across the country.”
Looking back, what are you most proud of about the program?
Altman: “Of course, the passage of the legislation itself. And, I’m very proud of CRF’s leadership role in deploying the credit. We are one of the only groups that have been able to get New Markets Tax Credits flowing to small operating businesses, and we are among the top five total allocatees in the program’s history.”
Learn more about the New Markets Tax Credit loan from CRF.
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How New Markets Tax Credit loans work
Congress authorizes NMTC funding. Interested community development entities like CRF submit applications, receive NMTC allocations, and match deserving projects that meet NMTC guidelines with investors.
CRF works closely with our lending referral partners in low-income communities to identify and manage NMTC projects from concept through completion, including:
- Qualifying the potential borrower according to NMTC guidelines.
- Handling all the details, including program administration, compliance, and reporting.
- Providing ongoing technical assistance to bring industry participants together to deliver living wage jobs into low-income communities.