NEW YORK, NY— September 27, 2023 – TruFund Financial Services, Inc. announces today, it has been selected by the Community Development Financial Institutions Fund’s (CDFI Fund) to receive $40 million in New Markets Tax Credit (NMTC) to attract private capital to rural and underserved communities. The announcement by the United States Department of Treasury was made official on Thursday, September 21st. This award is the 11th NMTC allocation through TruFund’s subsidiary, Empowerment Reinvestment Fund LLC (ERF), a certified Community Development Entity (CDE), bringing ERFs total awards to $390 million in New Market Tax Credits allocations from the CDFI Fund since 2003.
The New Markets Tax Credit program, administered by the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of the Treasury, is a powerful tool for driving economic prosperity and reducing poverty in distressed communities. It provides tax incentives to attract private investment in projects that stimulate economic growth and improve the quality of life for residents in low-income areas. Over the years, TruFund has used its NMTC allocations to facilitate the development of essential community assets, including healthcare facilities, educational institutions, and businesses that create quality jobs.
TruFund Financial Services has a longstanding track record of leveraging financial resources to make a positive impact on communities that have historically been underserved. Through our allocations, we have facilitated over $1 billion in private investment to the communities we serve. With this substantial $40 million NMTC allocation, TruFund will be able to catalyze even more transformative projects in underserved and underinvested areas where access to capital is often limited.
TruFund President & CEO James H. Bason stated, "We are deeply honored to receive this NMTC allocation from the U.S. Treasury. This award underscores the organization's track record and commitment to driving economic progress and empowerment in underserved communities.
“This allocation will enable us to continue our mission of providing essential financing to support small businesses, community facilities, and in areas that need it the most." said Bason.
“In the wake of the sharp increase in child poverty, and the massive loss of minority-owned businesses resulting from the pandemic, we look forward to digging deeper into the underserved communities we target to reverse these trends and create more opportunities for intergenerational wealth creation,” said Monica Edwards, Senior Vice President | National Director of New Markets Tax Credit.
This new NMTC allocation will help TruFund build on its successes and further its mission to create lasting positive change in underserved communities. It will be deployed to finance a range of projects, including:
Small Business Expansion: Providing crucial financing to small businesses in underserved areas, helping them grow, create jobs, and contribute to local economies.
Community Facility Development: Supporting the construction and renovation of community facilities such as healthcare centers, schools, and community centers.
Affordable Housing Initiatives: Facilitating the development of affordable housing units, addressing critical housing needs in low-income neighborhoods.
Job Creation: Fostering job opportunities and workforce development programs to empower residents.
TruFund Financial Services extends its heartfelt appreciation to the U.S. Department of the Treasury, the CDFI Fund, and its dedicated partners and stakeholders who have contributed to this achievement. The organization looks forward to continuing its impactful work in partnership with communities across the country.
For more information about TruFund Financial Services and its initiatives, please visit www.trufund.org.
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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.
About Empowerment Reinvestment Fund
Empowerment Reinvestment Fund LLC (ERF) is the subsidiary of TruFund that is a certified Community Development Entity (CDE) qualified to receive allocations.
Since 2003, ERF has been awarded $390 million in NMTC allocations from the Community Development Financial Institution (CDFI) Fund. This highly competitive award is a part of the NMTC Program, enacted by Congress in 2000 to encourage economic development investment in low-income communities nationwide.
About TruFund Financial Services:
TruFund Financial Services is a mission-driven community development financial institution (CDFI) committed to promoting economic development in underserved communities across the United States. Since 2005, TruFund has provided essential financial resources and expertise to support small businesses, community facilities, affordable housing projects, and job creation initiatives. With a focus on social impact, TruFund strives to empower individuals and transform communities. For more information, visit www.trufund.org.
