Nonprofit Finance Fund Awarded $50 Million in New Markets Tax Credit Allocation
The NMTC Program, administered by the US 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% 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 total 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 theaters, 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."