LOS ANGELES, CA -- (Marketwired) -- 04/25/13 -- National New Markets Fund, LLC (the "Fund") has been awarded a $75 million New Markets Tax Credit (NMTC) allocation by the U.S Treasury Department to finance job-creating businesses in low-income communities. This is the sixth and largest NMTC allocation for National New Markets Fund, which has been awarded a total of $312 million in such credits since 2006.
"As with every NMTC allocation, we look forward to using this latest $75 million to invest in projects that create jobs, revitalize neighborhoods and improve lives," said Deborah La Franchi, co-founder and president of National New Markets Fund, as well as founder, CEO and president of Los Angeles-based Strategic Development Solutions (one of the Fund's two parent companies). "The projects we target are highly-impactful, yet extremely difficult to finance without such tax credits."
In the latest allocation round, the Treasury Department's Community Development Financial Institutions Fund (CDFI Fund) allocated $3.5 billion in NMTCs to 85 organizations in 29 states. The $75 million allocated to National New Markets Fund (the third largest in this allocation round) was awarded after a competitive selection process that included more than 300 applicants from across the U.S.
"This allocation will enable us to help capital-challenged projects fulfill their potential of bringing jobs, opportunity and hope to the areas that need it most," added Belden Hull Daniels, co-founder and CEO of National New Markets Fund and CEO of Boston-based Economic Innovation International (the Fund's other parent company).
National New Markets Fund invests in projects with the capacity to transform designated low-income communities. Since 2006, the Fund has closed financing on 21 major projects nationwide.
"The awardees for the 2012 round of the New Markets Tax Credit Program will all be working toward positive economic change in communities across America," said CDFI Fund Director Donna Gambrell. "Over $31 billion of the tax credits we've awarded in past years have already been invested in low-income and distressed areas."
About The New Markets Tax Credit (NMTC) Program
The NMTC Program was launched by the U.S. Treasury Department in 2000 to help facilitate difficult-to-finance economic development projects in low income communities. It serves as a catalyst for private investment in such projects by permitting taxpayers to receive a credit against federal income taxes for equity in investment vehicles known as Community Development Entities (CDEs), which offer the credits to taxable investors in exchange for stock or capital interest. All of the qualified equity investment is used by the CDEs to help fund projects that stimulate growth and create jobs. The NMTC program is administered by the Treasury Department's Community Development Financial Institutions (CDFI) Fund, More information is available at http://www.cdfifund.gov.
About National New Markets Fund
National New Markets Fund, LLC invests in projects that serve targeted low-income communities nationwide. Its mission is to provide funding and technical assistance for projects that foster job creation and overall economic and social development. The Fund consists of $312 million in New Markets Tax Credit (NMTC) Allocation awarded by the U.S. Department of the Treasury. To date, the Fund has closed financing on 21 major projects across the U.S., including seven projects that have earned major awards. National New Markets Fund was launched in 2005 as a partnership between Los Angeles-based Strategic Development Solutions (SDS) and Boston-based Economic Innovation International. SDS was founded in 2001 by Deborah La Franchi and has become a market leader in the creation of Double and Triple Bottom Line private equity and real estate funds. Economic Innovation International, Inc. was founded in 1970 by Belden Hull Daniels and is recognized internationally for building more than $158.2 billion of privately capitalized, innovative institutions that generate wealth and high quality jobs. More information about National New Markets Fund is available at http://www.sdsgroup.com/funds/national-new-markets-fund/nnmf.
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