Treasury Department Awards $43 million in New Markets Tax Credits to Capital Impact Partners
WASHINGTON (June 5, 2014) —The U.S. Department of Treasury’s CDFI Fund has awarded Capital Impact Partners $43 million in New Markets Tax Credit (NMTC) allocation. Capital Impact Partners is one of 87 organizations to receive a combined $3.5 billion in NMTC, which are designated for community development organizations to help save and create jobs and spur economic development in distressed communities.
Over the last eight years, Capital Impact Partners has closed more than sixty NMTC transactions disbursing nearly $500 million nationwide to support healthcare, housing, independent aging, healthy foods and education facilities in areas that need it most, with a particular focus on communities such as Detroit. For example, just last week, Capital Impact Partners financed the Banner Supermarket, an independent, family owned, full service grocery operation located in a low income neighborhood on the west side of Detroit. Banner Supermarket is an American success story owned and operated by an immigrant family, a group of five brothers who came to the United States more than 30 years ago. The transaction provided more than $5.5MM in NMTC financing that will enable the family to approximately double the size of the market that has been in the neighborhood since the early 1970s, significantly increasing access to fresh healthy food for its customers, more than 70% of whom use the SNAP program. The project will create an estimated 72 construction jobs and 64 full-time jobs.
“New Market Tax Credits are an important tool from the CDFI Fund,” said Terry Simonette, president and CEO of Capital Impact Partners. “These funds are critical to helping low-income communities and can have immediate and positive impact on people’s lives. We are proud to be a part of this program.”###
Capital Impact Partners (formerly NCB Capital Impact), is a leader in financial and social innovation for communities. A nonprofit organization and Community Development Financial Institution, we bring our roots in cooperative development, diverse network of partners and problem solving know-how to connect communities to capital and capabilities that together create social change. Learn more at www.capitalimpact.org