NMTC PROGRAM

NMTC PROGRAM

AWARD BOOK

CY 2020

W W W.CD FI FU N D.G OV

The CDFI Fund is an equal opportunity provider.

THE NEW

MARKETS

TAX CREDIT

PROGRAM

The New Markets Tax Credit Program (NMTC Program) helps economically distressed communities attract private investment capital. This federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. Communities benefit from the jobs associated with investments in manufacturing, retail and technology. Communities also benefit from greater access to housing and public facilities such as health, education, and childcare.

NMTC PROGRAM AWARD BOOK

Through the NMTC Program, the CDFI Fund allocates tax credit authority to Community Development Entities (CDEs) through a competitive application process. CDEs are financial intermediaries through which investment capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. With these capital investments, CDEs can make loans and investments to businesses operating in distressed areas that have better rates and terms and more flexible features than the market. The NMTC Program helps to offset the perceived or real risk of investing in distressed and low-income communities. In exchange for investing in CDEs, investors claim a tax credit worth 39% of their original CDE equity stake, which is claimed over a seven-year period. In addition to receiving a tax benefit, investors have the advantage of entering new, unsaturated markets before their competitors, thereby increasing their chances of success. The NMTC Program enables investors to gain recognition for supporting the revitalization of America's communities.

NMTC PROGRAM HISTORY:

? In the 17 rounds to date, the CDFI Fund has made 1,354 allocation awards totaling $66 billion in tax credit authority, including $3 billion in Recovery Act awards and $1 billion that was specifically set aside for recovery and redevelopment in the wake of Hurricane Katrina.

? $ 55.9 billion in New Markets Tax Credits have been invested in low-income communities since the program's inception through FY 2020.

IMPACT OF NMTC PROGRAM:

For every $1 invested by the federal government, the NMTC Program generates over $8 of private investment.

Since its inception, the NMTC Program has supported the construction of 63 million square feet of manufacturing space, 98 million square feet of office space, and 69 million square feet of retail space.

The IRS's NMTC Program regulations generally require that at least 85% of QEI proceeds be invested in Qualified Low-Income Community Investments (QLICIs). All 100 of the 2020 allocatees indicated that they would invest at least 95% of QEI dollars into QLICIs. In real dollars, this means at least $500 million above and beyond what is minimally required by the NMTC Program will be invested in low-income communities.

GEOGRAPHIC LOCATION OF ALLOCATEES

100

THE 100 ALLOCATEES ARE HEADQUARTERED IN 34 DIFFERENT STATES AND THE DISTRICT OF COLUMBIA

45

45 OF THE ALLOCATEES (OR 45%) WILL FOCUS INVESTMENT ACTIVITIES ON A NATIONAL SERVICE AREA;

26

26 OF THE ALLOCATEES (OR 26%) WILL FOCUS ON A MULTI-STATE SERVICE AREA;

13

13 OF THE ALLOCATEES (OR 13%) WILL FOCUS ACTIVITIES ON A STATEWIDE SERVICE AREA;

16

AND 16 OF THE ALLOCATEES (OR 16%) WILL FOCUS ON LOCAL MARKETS (E.G., A CITYWIDE OR COUNTYWIDE AREA).

INVESTMENT ACTIVITIES

Approximately $3.8 billion (78%) of NMTC investment proceeds will likely be used to finance and support loans to or investments in operating businesses in low-income communities.

Approximately $1.1 billion (22%) of NMTC investment proceeds will likely be used to finance and support real estate projects in low-income communities.

NMTC PROGRAM AWARD BOOK

URBAN VS. RURAL INVESTMENT AREA*

APPROXIMATELY APPROXIMATELY APPROXIMATELY

$2.689 $1.106 $1.094

BILLION BILLION BILLION

WILL BE INVESTED IN MAJOR URBAN AREAS

WILL BE INVESTED IN MINOR URBAN AREAS

WILL BE INVESTED IN RURAL AREAS

*Based on initial estimates of 2020 allocatees

CDFIs vs. Non-CDFIs

37%

of the allocatees are Certified Community Development Financial Institutions (CDFIs) or subsidiaries of Certified CDFIs. They received allocations totaling $1.855 billion.

LIST OF ALLOCATION RECIPIENTS

Name of Allocatee

Accion Opportunity Fund Community Development Advantage Capital Community Development Fund, LLC Alaska Growth Capital BIDCO, Inc. AMCREF Community Capital, LLC Atlanta Emerging Markets, Inc. BSD Capital, Inc. dba Lendistry Black Business Investment Fund, Inc. BlueHub Capital, Inc. BMO Harris New Markets Fund, LLC Border Communities Capital Company, LLC Building America CDE, Inc. BXS Community Fund, LLC CAHEC New Markets, LLC California Statewide Communities Development Corp. Capital Impact Partners CBKC CDC, LLC CCG Community Partners, LLC Central States Development Partners, Inc. Chase New Markets Corporation Chicago Development Fund Cinnaire New Markets LLC Civic Community Partners, Inc.

NMTC PROGRAM AWARD BOOK

City

San Jose

New Orleans

Anchorage New Orleans

Atlanta Brea

Orlando Boston Chicago Carlsbad Washington Jackson Raleigh Walnut Creek Arlington Kansas City Princeton Rock Island Chicago Chicago Lansing San Diego

State

CA

LA

AK LA GA CA FL MA IL CA DC MS NC CA VA MO NJ IL IL IL MI CA

Service Area

Multi-state

National

National

National

Local

National Statewide (or territory-wide) National Multi-state

Multi-state National Multi-state Multi-state Statewide (or territory-wide) National Multi-state National

National

National Local

Multi-state Local

Allocated Amount $55,000,000

$60,000,000

$30,000,000

$65,000,000

$50,000,000

$35,000,000

$55,000,000 $20,000,000 $50,000,000

$40,000,000 $55,000,000 $50,000,000 $50,000,000

$55,000,000

$60,000,000 $30,000,000 $45,000,000

$30,000,000

$65,000,000 $55,000,000 $60,000,000 $50,000,000

Name of Allocatee

City

Cleveland New Markets Investment Fund II, LLC

Colorado Enterprise Fund, Inc.

Colorado Growth and Revitalization Fund, LLC

Community Development Venture Capital Alliance, The

Community Hospitality Healthcare Services, LLC

Community Housing Capital, Inc.

Community Loan Fund of New Jersey, Inc.

Corporation for Supportive Housing

Dayton Region New Market Fund, LLC

DBL Equity Partners

Development Fund of the Western Reserve, Inc.

DV Community Investment, LLC

Ecotrust CDE LLC

Enterprise Financial CDE, LLC

ESIC New Markets Partners LP

EverNorth Rural Ventures, Inc.

FirstPathway Community Development, LLC

First-Ring Industrial Redevelopment Enterprise, Inc.

Florida Community Loan Fund, Inc.

Forward Community Investments, Inc.

Genesis LA CDE, LLC

Greenline Community Development Fund, LLC

Gulf Coast Housing Partnership, Inc.

Hampton Roads Ventures, LLC

Harbor Bankshares Corporation

Cleveland Denver Denver

New York Englewood

Decatur New Brunswick

New York Dayton Fargo Akron Phoenix Portland St. Louis

Columbia Burlington Milwaukee

West Allis

Orlando Madison Los Angeles Denver New Orleans Norfolk Baltimore

State

OH CO CO NY FL GA NJ NY OH ND OH AZ OR MO MD VT WI

WI

FL WI CA CO LA VA MD

Service Area

Local Statewide (or territory-wide) Statewide (or territory-wide) National

National

National Statewide (or territory-wide) National

Local Statewide (or territory-wide)

Local

National National National

National

Multi-state

Multi-state

Local

Statewide (or territory-wide)

Statewide (or territory-wide)

Local National

Multi-state

National

Multi-state

Allocated Amount $50,000,000 $25,000,000 $35,000,000 $45,000,000 $65,000,000 $30,000,000 $50,000,000 $35,000,000 $50,000,000 $30,000,000 $50,000,000 $65,000,000 $50,000,000 $60,000,000 $60,000,000 $60,000,000 $55,000,000

$30,000,000

$35,000,000 $40,000,000 $55,000,000 $50,000,000 $15,000,000 $50,000,000 $50,000,000

Name of Allocatee

Heartland Regional Investment Fund, LLC Heartland Renaissance Fund, LLC HEDC New Markets, Inc Hope Enterprise Corporation IFF Legacy Economic Growth Fund, LLC Local Initiatives Support Corporation Los Angeles Development Fund Low Income Investment Fund Mascoma Community Development, LLC MBS Urban Initiatives CDE, LLC

Michigan Community Capital

Mid-City Community CDE, LLC Midwest Renewable Capital, LLC Montana Community Development Corporation MuniStrategies, LLC National Community Fund I, LLC National Community Investment Fund

National Impact Fund, LLC

National New Markets Fund, LLC New Market Opportunity Fund CDE, LLC New Markets Community Capital, LLC NYCR-CDE, LLC Ohio Community Development Finance Fund Old National CDE Corporation

Pacesetter CDE, Inc.

Pathway Lending CDE, LLC

City

St. Louis Little Rock New York Jackson Chicago Rogersville New York Los Angeles San Francisco Lebanon

St Louis Lansing Bethesda Grimes Missoula Jackson Portland Chicago Wayzata Los Angeles Indianapolis Los Angeles New York Columbus Louisville Fort Worth Nashville

NMTC PROGRAM AWARD BOOK

State

MO AR NY MS IL MO NY CA CA NH MO MI MD IA MT MS OR IL MN CA IN CA NY OH KY TX TN

Service Area

Multi-state

Multi-state National Multi-state Multi-state National

National

Local

National

National

National Statewide (or territory-wide) National

National

Multi-state Multi-state National

National National National Statewide (or territory-wide) Statewide (or territory-wide)

Local Statewide (or territory-wide) Multi-state

National

Multi-state

Allocated Amount $50,000,000 $40,000,000 $50,000,000 $55,000,000 $50,000,000 $60,000,000 $65,000,000 $50,000,000 $60,000,000 $60,000,000 $60,000,000 $65,000,000 $40,000,000 $20,000,000 $60,000,000 $65,000,000 $65,000,000 $50,000,000 $45,000,000 $65,000,000 $45,000,000 $50,000,000 $50,000,000 $65,000,000 $50,000,000 $45,000,000 $30,000,000

Name of Allocatee

PB Community Impact Fund, LLC

Phoenix Community Development and Investment Corporation

PIDC Community Capital

Pittsburgh Urban Initiatives, LLC

PNC Community Partners, Inc.

Prestamos CDFI, LLC

Primary Care Development Corporation

Raza Development Fund, Inc.

Reinvestment Fund, Inc.,

Rural Development Partners, LLC

San Francisco Community Investment Fund

SB New Markets CDE LLC

Southern Bancorp Bank

Southern Community Capital, LLC

Southside Community Optimal Redevelopment Enterprise, LLC

St. Louis Development Corporation

Stonehenge Community Development, LLC

Texas Mezzanine Fund, Inc.

The Business Valued Advisor Fund, LLC

The Community Builders CDE, LLC

The Innovate Fund, LLC

The Rose Urban Green Fund, LLC

UB Community Development, LLC

Urban Action Community Development, LLC

USBCDE, LLC

Waveland Community Development, LLC

City

Mendenhall

Phoenix Philadelphia Pittsburgh Pittsburgh

Phoenix New York Phoenix Philadelphia Forest City San Francisco Saint Paul Arkadelphia Jackson

Chicago

St. Louis Baton Rouge

Dallas Austin Boston Greenville Denver Atmore Baltimore St. Louis Milwaukee

State

MS

AZ PA PA PA AZ NY AZ PA IA CA MN AR MS

IL

MO LA TX TX MA SC CO AL MD MO WI

Service Area

Multi-state

Local Local Local National Multi-state National National National National Local Local Multi-state Multi-state

Multi-state

Local National Statewide (or territory-wide) National National Multi-state National Multi-state National National National

Allocated Amount $50,000,000

$55,000,000 $60,000,000 $50,000,000 $55,000,000 $45,000,000 $65,000,000 $60,000,000 $60,000,000 $50,000,000 $50,000,000 $60,000,000 $50,000,000 $60,000,000

$50,000,000

$40,000,000 $50,000,000 $65,000,000 $65,000,000 $50,000,000 $50,000,000 $45,000,000 $65,000,000 $50,000,000 $65,000,000 $20,000,000

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