Enhanced Capital Awarded a $60,000,000 Allocation Under The Federal New Markets Tax Credit Progam
Enhanced Community Development, LLC will provide loans and equity investments to businesses in underserved areas thanks to this $60 million allocation:
The United States Department of the Treasury announced today that Enhanced Community Development, LLC has been selected to receive a $60,000,000 allocation under the New Markets Tax Credit (NMTC) Program administered by the U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund. Enhanced Community Development, LLC is a subsidiary of Enhanced Capital Partners, Inc. It will principally use its tax credits to provide loans and equity investments to businesses, including not-for-profit organizations, located in low-income communities in New Orleans, New York State and the District of Columbia.
“We are honored that the Department of Treasury and the CDFI fund recognized our track record of investing in businesses located in low-income communities,” said Michael Korengold, President and CEO of Enhanced Capital. “We will use this allocation to continue to fund businesses in economically challenged areas such as New Orleans, the District of Columbia and New York State.”
For the deployment of its allocation in New York State, Enhanced Capital is partnering with the New York State Urban Development Corporation d/b/a Empire State Development Corporation, which is the New York State vehicle for promoting economic development, job creation and private sector investment in New York State.
“We look forward to working with the Empire State Development Corporation in its efforts to promote economic development in underserved areas throughout New York State,” said Richard Montgomery, Managing Director of Enhanced Capital’s NMTC program. “These tax credits will allow many of its economic development projects to obtain the private sector financing necessary to move forward.”
The NMTC program grants tax credits to the private sector to encourage investment in lowincome communities throughout the nation. The program is designed to stimulate economic and community development in underserved areas.
“The New Markets Tax Credit Program is promoting private-sector investment in our nation’s communities and is helping to stimulate growth, create jobs and bringing new opportunities to Americans most in need,” said Donna J. Gambrell, Director of Treasury’s CDFI Fund. “This innovative federal program is helping to finance numerous businesses and real estate projects across the country—projects that may not have been financed if not for New Markets Tax Credits.”
To date, over $14 billion of private-sector capital has been invested through the NMTC Program into urban and rural communities throughout the country. Data reported through 2008 shows that $12.7 billion dollars of NMTC capital has been invested into approximately 2,000 businesses and real estate development. A complete list of the organizations selected and additional information on the NMTC Program can be found on the CDFI Fund’s web site at: www.cdfifund.gov.
About Enhanced Capital
Enhanced Capital Partners, Inc. (www.enhancedcap.com) is a national private investment firm specializing in investments in small and mid-sized companies to further economic development in strategic areas. Enhanced manages over $400 million out of its offices in New York, Alabama, Colorado, Louisiana, Texas and Washington D.C.