New York, NY – November 18, 2016 – In the largest single round in the history of the New Markets Tax Credit (NMTC) Program since its creation in 2001, TruFund Financial Services, Inc. has been awarded $55 million to spur economic and community development in distressed and low-income communities.
TruFund received the New Market Tax Credit allocation through its subsidiary, Empowerment Reinvestment Fund LLC (ERF), a certified Community Development Entity (CDE). ERF has previously been awarded $185 million in New Market Tax Credit allocations from the CDFI Fund since 2003.
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund announced the $7 billion in total New Markets Tax Credits to 120 organizations nationwide, across 36 states, the District of Columbia, and Puerto Rico.
“We have a successful track record of using New Markets Tax Credit financing to support projects that create quality jobs and services in the communities we serve.” said Aisha Benson, Senior Vice President New Markets Tax Credit/Managing Director. “This award is recognition of that success.”
It is estimated that more than $1.4 billion in New Markets Tax Credit investments will be made in non-metropolitan communities. Also, the U. S. Department of Treasury recognized in this round of allocations, the number of minority-owned or controlled organizations receiving awards nearly tripled from the previous award round. TruFund, a minority controlled firm, plans to deploy 41% of its allocation in non-metropolitan communities.
In the past, every dollar in tax credits has generated an average of eight private investment dollars. TruFund will use this investment to attract private investment capital that will support job creation through projects like manufacturing plants, retail developments, affordable housing and health centers.
“The work we do is extremely impactful.” said James H. Bason, President & CEO of TruFund “The New Markets Tax Credit Program incentivizes community development and economic growth through the use of tax credits which will allow TruFund to attract the private investments necessary to reinvigorate struggling local economies and distressed communities”
The New Markets program is administered by the U.S. Department of the Treasury. It is designed to stimulate economic growth and job creation in low-income communities by providing much-needed investment capital, financial counseling and other services. Awardees are selected after a highly competitive and rigorous government review process.
About TruFund Financial Services TruFund Financial Services, Inc. is a wholly independent national non-profit Community Development Financial Institution (CDFI). TruFund seeks to stimulate economic development in communities that are underserved by traditional banking institutions by providing fair and accessible capital, hands-on technical assistance and innovative solutions to small businesses and nonprofit organization. For more information, please visit the website at www.trufund.org
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