U.S. Treasury program aims to stimulate employment, growth, and revitalization in low-income communities
NEW YORK, November 17, 2016 — Nonprofit Finance Fund (NFF) has been awarded a $50 million New Markets Tax Credit (NMTC) allocation to support community development projects in low-income areas throughout the United States. This award, NFF’s seventh in the highly competitive NMTC program, will help innovative organizations expand and better serve their communities.
The NMTC Program, administered by the U.S. Department of the Treasury Community Development Financial Institutions Fund, incentivizes community development and economic growth through the use of tax credits that attract private investment to distressed communities. Over a period of seven years, the program rewards investors with tax credits totaling 39 percent of the total financing for select projects in traditionally hard-to-finance communities.
“We are excited to further use NMTC benefits to channel investor capital toward projects in communities with the greatest need,” said Norah McVeigh, Managing Director of Financial Services at NFF. “Investment in infrastructure and facilities is vital to supporting quality service-delivery and growth.”
NFF’s NMTC product provides attractive, flexible loan terms that give nonprofits the ability to affordably complete facility improvements. Today’s award brings to $281 million NMTC allocations to NFF since 2007. With previous allocations, NFF has financed 26 high-impact projects that developed 1.6 million square feet of facilities, including health centers, nonprofit theatres, headquarters for social service providers, charter schools, and a statewide food bank.
For example, NFF’s provision of $8 million in NMTC allocation to Charles River Community Health helped it to construct a new facility, doubling the number of Boston-area patients receiving its medical, dental, mental health, vision, and pharmacy services; reducing appointment waiting times, and gaining operating efficiencies. “We chose NFF as our financing partner because they truly understand the challenges and needs of operating a community health center. They are driven by mission, and are genuinely interested in the health and well-being of patients living in our community,” said Jim Souza, Chief Financial Officer of Charles River. “NFF’s funding was instrumental in helping us grow.”
About Nonprofit Finance Fund
Nonprofit Finance Fund (NFF) unlocks the potential of mission-driven organizations through tailored investments, strategic advice, and accessible insights. Founded in 1980, NFF helps organizations connect money to mission effectively through established and innovative approaches to social sector finance. A leading community development financial institution with over $250 million in assets under management, NFF has provided $620 million in financing and access to additional capital in support of over $2.3 billion in projects for thousands of organizations nationwide. NFF is headquartered in New York City and serves clients from five offices across the country. www.nff.org
Source: Nonprofit Finance Fund