CDFI Awards Rural Development Partners $50 Million in NMTC Authority

News provided by

Sep 22, 2023, 16:36 ET

FOREST CITY, Iowa, Sept. 22, 2023 /PRNewswire/ -- Rural Development Partners (RDP) was awarded $50 million in New Markets Tax Credit (NMTC) authority from the U.S. Treasury's CDFI Fund. This is RDP's twelfth NMTC award since the company's inception in 2004, totaling $751.7 million. RDP has financed 47 projects to date, spurring economic growth, providing food access, and creating quality jobs accessible to low-income workers in underserved communities nationwide.

"RDP is honored to receive an allocation of New Markets Tax Credits from the CDFI Fund. We look forward to continuing to do our part in creating everlasting impacts in low-income communities across the country. New Markets Tax Credits have been and will continue to be a wonderful tool to encourage investment in those communities we serve." – Dan Helgeson, CEO of RDP

The NMTC program was established by Congress in 2000 and has been one of the most successful tools for helping economically distressed communities attract private investment, generating $8 of private investment for every $1 of federal funding. The New Markets Tax Credit program incentivizes community development and economic growth by attracting private capital to low-income, underserved communities. Individual and corporate investors receive a tax credit against their federal income tax in exchange for making equity investments. The New Markets Tax Credit Program has been a critical source of financing for businesses and community facilities in both rural and urban areas by filling the funding gap for projects ranging from Federally Qualified Health Care Centers and Food Bank Distribution Centers to large-scale manufacturing facilities. The NMTC program supports expanded services and provides employment opportunities that improve quality of life while having catalytic economic benefits that revitalize communities. The CDFI reports that as of the end of FY 2022, $62.9 billion in New Markets Tax Credits have been invested in low-income communities since the program's inception.

Rural Development Partners is a Community Development Entity (CDE) with a national service area, eligible to apply for an annual allocation of Federal NMTCs. RDP works to combine NMTCs with bank loans and tax credit investor funds to create more favorable financing solutions than are available through conventional lending and investing. RDP seeks to serve and partner with businesses, non-profit organizations, communities, and government entities that share its mission to build public-private partnerships for catalytic job growth in rural America. To learn more about RDP or the NMTC Program, visit their Website, FaceBook or LinkedIn. To hear stories told by the communities they impact, visit their YouTube channel.

Contact: Melanie Holtan, [email protected]

SOURCE Rural Development Partners