Editor’s Note: This post is from Valerie Heiby, our Director of Development.
We have all heard how market conditions and increased competition have affected the health of Ohio’s community banking sector and the quality and availability of banking products and services. But in this economy, it’s imperative to find new ways to do business. Investing in Finance Fund’s New Markets Tax Credit (NMTC) program is one way to add to your bottom line, increase your CRA benefit and create economic development in your community.
Finance Fund works to enable progress and inspire change within Ohio’s low-income communities. Our clients include nonprofit organizations and for-profit businesses. The NMTC program is in line with Finance Fund’s mission to “…build bridges between resources and the low-income community.” We do that by partnering with banks to provide credit to business borrowers (for-profit & nonprofit) for fixed assets in qualifying low-income census tracks. As our bank partner, your clients have access to capital with lower payments, you have a tool to share or lower risk, and your investment in the community builds assets giving rise to stronger businesses.
It’s simple really. The NMTC program permits taxpayers (that would be you) to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDE: that would be Finance Fund). These investments are then used by Finance Fund to provide credit for in development projects low-income communities.
These investments are used in low income census tract communities for business, real estate and community facility projects that create or retain jobs, stabilize neighborhoods and spurn further economic development, such as the Heritage Square Marketplace and Noble Learning Center.
Finance Fund has been using this program since 2004, and at the close of 2008 has leveraged $212 million on an investment of $44.5 million for 25 projects creating 1,249 full-time jobs and serving 536 children within Ohio’s low income communities.
We invite you to contact us today to find out more about how your community bank can invest with Finance Fund’s New Markets Tax Credit program.
Tags: CDFI, Community Development Finance Institution, Finance Fund, New Markets Tax Credit
