PeopleFund Awarded $30 million in New Markets Tax Credit Allocation
U.S. Treasury Program aims to stimulate employment, growth, and revitalization in low income communities
Austin, Texas – On November 17th, PeopleFund was awarded a $30 million New Market Tax Credit (NMTC) allocation to support community development in low income areas throughout Texas.
The NMTC program, administered by the U.S. Department of Treasury Financial Institutions Fund, incentivizes community development and economic growth through the use of tax credits that attract private investment to distressed communities. Over a period of seven years, the program rewards investors with tax credits totaling 39% of the total financing for select projects in traditionally hard-to-finance communities.
PeopleFund President & CEO Gary Lindner was honored to receive news of the award and remarked, “The NMTC award will allow us to support projects in severely distressed census tracts, with high community impact and job creation.”
PeopleFund received a previous NMTC allocation which was used to provide vital community services in Houston, Fort Worth, and San Antonio.
PeopleFund is a registered 501(c)3 nonprofit organization established in 1994. It is a U.S. Treasury certified Community Development Financial Institution (CDFI) and SBA certified lender. PeopleFund provides business loans up to $350,000 to Texas businesses that do not qualify for bank loans. It also provides client business assistance and education. The target market is minority, women, and veteran business owners and those residing in low to moderate income census tracts. Over 40% of current loans are to startups and non-profit organizations. Through access to capital and educational opportunities, PeopleFund creates economic opportunity and financial stability for underserved people to build healthy small businesses. PeopleFund inspires, educates, funds, and elevates entrepreneurs on the path to prosperity and the American dream. www.peoplefund.org
About the New Markets Tax Credit Program
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 vehicles known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities.
CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. The 120 organizations receiving awards were selected from a pool of 238 applicants that requested approximately $17.6 billion in allocation authority. To learn more about the New Markets Tax Credit Program, please view the program Fact Sheet or visit www.cdfifund.gov/nmtc .