The Community Development Financial Institutions Fund has announced an allocation award of $70 million in federal tax credits to Midwest Minnesota Community Development Corporation (MMCDC).
This is one of the most powerful community development tools in the country. — MMCDC President Julia Nelmark
As a prior allocatee, MMCDC has financed health care centers in medically underserved areas, nonprofit agencies benefiting youth and families, and for-profit businesses bringing overseas jobs to rural America.
NMTC Program awards historically have spurred $8 of private investment for every $1 of federal investment, according to the CDFI Fund. This has helped create or retain more than 800,000 jobs and 205 million square feet of commercial real estate.
“(These) awards will finance projects ranging from large manufacturing plants to grocery and retail stores that will create jobs and provide critically needed goods and services to residents of Low-Income Communities,” CDFI Fund Director Jodie Harris said in a press release.
The federal New Markets Tax Credit attracts and rewards private investment by offering a tax credit to the investor. MMCDC has provided flexible financing up to $20 million, but more often utilizes small loan funds to extend the benefits of the credit to small rural businesses.
The CDFI Fund is a program of the U.S. Department of the Treasury and certifies organizations, such as MMCDC, as Community Development Financial Institutions. MMCDC is a Detroit Lakes, Minn.-based nonprofit engaged in business, community and housing development. Its New Markets Tax Credit service area includes North Dakota, South Dakota, Wyoming and Minnesota.