FOR IMMEDIATE RELEASE
July 16, 2020
Media Contacts:
Kim Carter Evans
646.385.6946
Kevans@trufund.org
$3.5 Billion in New Markets Tax Credits Awarded to Spur Economic Growth Nationwide
New York, NY – July 16, 2020 –TruFund Financial Services, Inc. announces today, it has been selected by the Community Development Financial Institutions Fund’s (CDFI Fund) to receive $35 million in New Market Tax Credits (NMTC) to attract private capital investment into rural and underserved communities. This award is the 9th NMTC allocation for TruFund and the third in the last four rounds of allocations through TruFund’s subsidiary, Empowerment Reinvestment Fund LLC (ERF), a certified Community Development Entity (CDE), bringing ERFs total awards to $315 million in New Market Tax Credits allocations from the CDFI Fund since 2003.
“We are enthusiastic about this award and the opportunity it brings to contribute to the economic recovery of our communities in the wake of COVID 19. We intend to use this allocation to deepen our commitment to and impact in rural areas and communities of color to foster quality job creation, racial equity, and economic mobility for low income people." said Aisha Benson, Executive Vice President – Chief Operating Officer.
In the official announcement, the CDFI Fund announced the awards of $3.5 billion in NMTC allocation to 76 community development organizations from a pool of 206 applicants that will spur economic and community development in distressed and low-income communities.
TruFund will focus its investments across its four strategic priorities: job creation, community services, catalytic projects that generate quality jobs and provide access to critical services, such as healthcare, and healthy foods, and disaster recovery. All these priority focus areas are essential to recovery and meeting the needs of distressed communities during and post-pandemic.
“We have made 15 Years of New Markets Tax Credit Impact At TruFund and will continue to foster economic equality and inclusion in low-income and underserved communities by delivering creative solutions and resources to help facilitate economic and community development throughout the country.” said James H. Bason, President & CEO of TruFund.
In the 16 rounds to date, the CDFI Fund has made 1,254 allocation awards totaling $61 billion in tax credit authority. $52.5 billion in New Markets Tax Credits have been in low income communities since the program’s inception through fiscal year (FY) 2019. Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government.
About CDFI Fund – New Markets Tax Credit
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as Community Development Entities (CDEs). 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.
To learn more about the New Markets Tax Credit Program and this year’s awardees, please visit CDFI Fund - NMTC Award Book
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. To learn more about TruFund, visit www.trufund.org.
