The U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund on Wednesday (July 15) awarded Arkansas Capital Corporation of Little Rock $35 million in federal New Markets Tax Credits (NMTC) allocations for the 2019 calendar year.
This award brings Arkansas Capital’s total NMTC allocations to $335 million since the program began in 2003.
The federal NMTC program is an incentive for investors and private capital sources to finance projects in low-income and rural communities, resulting in economic impacts, job creation, and other community benefits.
Allocations of NMTCs are made only to organizations that have earned designation as a Community Development Entity by the CDFI Fund. Arkansas Capital was one of 76 applicants nationwide to be awarded NMTCs in this latest round, totaling nearly $3.5 billion. According to the CDFI Fund, there were 206 applications for NMTCs with a total request of $14.7 billion.
“Through the $335 million in NMTC allocations we’ve received, Arkansas Capital and our local and state partners have helped projects produce 2,318 direct jobs and 1,384 construction jobs in the most distressed census tracts in our state,” said Sam Walls, president of Arkansas Capital.
“These jobs are part of 36 projects deployed to date. With our partners, these tax credits have helped Arkansas Capital to finance rural manufacturing operations, nonprofit and education facilities, and rehabilitated historic buildings in abandoned or distressed Main Street corridors,” he said.
Walls expects the new round of NMTCs will be deployed by this fall. Arkansas Capital manages its NMTC portfolio through its subsidiary, Heartland Renaissance Fund.
“New Markets Tax Credits are a phenomenal program,” said Walls. “We are proud to have been able to bring them to the state.”