NEW YORK, NY — The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has awarded HEDC New Markets, Inc., a subsidiary of Grow America (formerly NDC), a $75 million allocation of New Markets Tax Credits (NMTC). This latest award brings the organization’s total cumulative NMTC allocation to $974 million, furthering its mission to drive equity and investment into the nation’s most underserved communities.
The NMTC Program is a critical federal tool designed to bridge financing gaps for projects in economically distressed areas. These credits attract private capital by providing investors a 39% tax credit over seven years in exchange for equity investments in Community Development Entities (CDEs) like HEDC New Markets, Inc.
“This allocation allows us to continue our work of revitalizing communities through high-impact projects that create jobs and expand access to essential services,” said David Trevisani, Executive Managing Director of Economic Development at Grow America. “With close to $1 billion in total allocations to date, we remain committed to fostering economic opportunity where it is needed most.”
Since its inception, HEDC has created over 18,000 permanent jobs, increased healthcare access by over 200,000 patient visits annually, and invested in education and social services projects in Severely and Deeply Distressed LICs throughout its National Service Area.
National Impact of the NMTC Program
Since its inception, the NMTC Program has served as a powerful engine for American infrastructure and economic growth:
- Private investment: Every $1 of federal investment through the program generates $8 of private investment.
- Space created: The program has supported the construction of 92.6 million square feet of manufacturing space, 108.6 million square feet of office space, and 67.1 million square feet of retail space.
- Deep distress: For this current round, 137 allocatees committed to investing at least 20% of their projects in “Deep Distress Areas,” which are characterized by high unemployment and significant poverty.
- Rural commitment: While much of the investment targets urban centers, approximately $2.417 billion of the total award is estimated to be invested in rural communities.
About Grow America
HEDC New Markets, Inc. is a subsidiary of Grow America, a national nonprofit organization dedicated to increasing the flow of capital to underserved communities and help attract private investment. Through its NMTC Program, HEDC will fund businesses that provide community goods and services such as healthcare, social services and education to LIPs and LIC residents, and manufacturing businesses that create quality, accessible jobs with a workforce training component.
For more information on the NMTC Program and its impact, visit www.cdfifund.gov/nmtc. To submit a project for consideration, obtain a project intake form by emailing nmtc_intake@growamerica.org.