2007 NMTC Awards Announced Today

$3.9B IN NMTC ALLOCATION AWARDs JUST ANNOUNCED

Highlights of 2007 Allocatees

• $3.9B allocated to 61 organizations
• Awardees located in 24 states and the District of Columbia (yet serving 45 states)
• $400MM in NMTC awarded specifically to 11 organizations for use in the redevelopment of the Hurricane Katrina Go Zone
• A list of awardees and more information may be found at the The CDFIFund's Website
  

Congratulations to all of the successful awardees, and congratulations to all of the small businesses, projects, real estate deals to receive NMTC investment, but more importantly, we send a huge kudos to the communities that will benefit from this additional needed investment capacity.

CDFI To Announce 2007 Awards

As we (NMTCeXchange,LLC) assist clients in their preparation for the upcoming New Markets Tax Credit(NMTC)Round, there will be a pause in today's activities as we anticipate the announcement of the awardees of last year's round (The 2007 NMTC Round). According to a Media Advisory recently released by the CDFIFund, Director Kimberly Reed will announce which entities across the nation were successful in receiving a portion of the $3.9B in New Markets Tax Credit Allocation.

Good luck to all those awaiting announcement, and congratulations to all of the small businesses, projects, real estate deals, and more importantly communities that will benefit from this additional investment capacity.

As with the Super Bowl, NBA Championship or any other major announcement of achievement or award, today is the day we are informed of the winners from "last season" however and undoubtedly, we will immediately resume our activities associated with producing the "champions" and winners for next year's round - the $3.5B 2008 NMTC Round.

We look forward to this time next year!

Contact NMTCeXchange today for CDE (Certified Development Entity) needs or New Markets Tax Credit Services.

View Full CDFI Media Advisory Here

Many Beneficiaries – Many Benefits

As we find ourselves on the eve of yet another NMTC Application Season (2008 Round), the information regarding the benefits of the NMTC program become more readily available.
An oft, not talked about group of beneficiaries are the financial and investor institutions.

Yes the program helps Low Income Communities, Low Income Community Businesses, CDE owners/founders, etc. However, it has many upsides for investors.

I’ve had a client ask me recently “is this ‘free money’?...why would an investor be interested in having its equity dollars go into my project?”

A portion of the answer lies in the tax credit benefits.
Another portion lies in the financial upside to the investor with the remainder of the answer having quite a lot to do with CRA lending strategies, etc.

Many investment and lending entities have seen very strong returns to their bottom lines from participating in the New Markets Tax Credit Program.

A February 2007 Report By The Department of Treasury (Community Developments – Insights) reports the following:

"Banks have chosen to participate in the NMTC program for a number of reasons.
These include attractive economic rates of return on investments; prospects
for generating significant impacts in low-income areas, which frequently
involve the use of partnerships with community-based organizations;
opportunities to diversify into other credit products and services; and
multiple
ways to receive favorable Community Reinvestment Act (CRA)
consideration."

The double bottom line returns associated with a bank’s allocation or
investments in the program have been so substantial in some cases, that some
institutions are actually mentioning the New Markets Tax Credit program as one
of the specific drivers of their success.

According to CNNMoney.com, Carver Bancorp, Inc, announced it’s “strong first quarter results” and asserted that their bottom line continues to “benefit from the New Markets Tax Credit ("NMTC") award” as reported by CNNMoney.com. Visit the CNNMoney report here.

I hope this was helpful and welcome your comments!

Regards,

NaShawndra Jackson-Davis

NMTC eXchange, LLC

http://www.nmtcexchange.com/

(Fall 2007) New Markets Tax Credit Program : Round V To Be Announced // Round VI To Be Opened

For all of us currently participating in the New Markets Tax Credit Program and those interested in getting involved, we can look forward to a busy next few months. Between now and late fall, we can anticipate the announcement of the 2007 Allocations – those who submitted a competitive application for NMTC Allocation will find out if their request was successful. A bit later, we can look forward to the opening of the 2008 Allocation Application Round. This includes the release of the application for what is now the final round for the NMTC Program. As the Principal of NMTCeXchange – a national NMTC consulting firm – I would suggest entities that are interested in applying for NMTC Allocation begin NOW, if they have not already.

I hope this was helpful & welcome your comments!
Regards,
NaShawndra Jackson-Davis

NMTC Allocation Rounds: Overview

The NMTC Program is gearing up for the 'opening' of its next competitive Allocation Application round: Round VI -2008. This, of course, means, there have been five previous rounds.

Please do not be confused if you have seen the rounds originally listed in a 2001-2002 (Round I) // 2003-2004 (Round II) format. For simplicity sakes, someone flexed their executive power and decided it would be a bit easier to track the Program if the Rounds were listed by single year only.

Let's Review:

• Round I (2003): $2.5B of NMTCs were allocated
  
  
• Round II (2004): $3.5B of NMTCs were allocated
  
  
• Round III (2005): $2B of NMTCs were allocated



• Round IV (2006): $4.1B of NMTCs were allocated (Increased by $600MM for GO Zone Allocation)



• Round V (2007): $3.9B of NMTCs can be allocated (Increased by $400MM for special GO Zone Allocation)

Q: Why is this bold red?

A: It is bold red because this is the round yet to be ANNOUNCED. In fact, hundreds of applicants across the nation are waiting with baited breath to to find out whether they received a piece of the $3.9B NMTC pie.

• Round VI (2008): $3.5B of NMTCs to be allocated

Q: Why is this bold red?

A: It is bold red because this is the round yet to be OPENED. In fact, hundreds of prospective applicants across the nation are waiting with baited breath for the 2008 NMTC Allocation Application so that they may competitively compete for a piece of the $3.5B NMTC Pie.

I hope this was helpful & welcome your comments!

Regards,

NaShawndra Jackson-Davis

NMTC INTRO - The Beginning

Why don't we cover the basics of the NMTC Program's humble beginnings:

• The New Markets Tax Credits (NMTC) Program was signed into law December 21, 2000 via the Community Renewal Tax Relief Act of 2000
• The NMTC Program is administered by the CDFI Fund which is part of the Department of Treasury.
• The Program was initially written into law with an expiry date of 2007 (we will talk later about the extension of the program and efforts to bring about permanent NMTC legislature).

According to the CDFI Fund, it:

Is authorized to allocate to CDEs the authority to issue to their investors
up to the aggregate amount of $16 billion in equity as to which NMTCs can be
claimed, including $1 billion of special allocation authority to be used for the
recovery and redevelopment of the Gulf Opportunity Zone.
To date, the Fund
has made 233 awards totaling $12.1 billion in allocation authority.

I hope this was helpful & welcome your comments!
Regards,
NaShawndra Jackson-Davis

Welcome to New Markets Tax Credits

Welcome Everyone,

Wow, so much to talk about and no real place to start. I presume I can discuss a bit, what I am looking to accomplish with this blog.

First and foremost, promoting eXchange regarding New Markets Tax Credits is the ultimate goal. By providing forums to have eXchange (of information, corrections, opportunities, updates, disagreements, support, etc) we learn.

The next goal is to learn. Through eXchange we can all learn about NMTCs (its application, usages, legislation, status, etc.)

Well, I've exhausted my extensive list of NMTC related goals and am actually anxious to get on with the rest of the blog!

I hope this was helpful & welcome your comments!
Regards,
NaShawndra Jackson-Davis