Dakota Business Lending has been selected by the U.S. Treasury Department's Community Development Financial Institution Fund to receive $30 million in New Markets Tax Credit allocation.
It is the first North Dakota-based financing entity to be chosen and one of the country’s top 100 community-focused organizations recognized this year.
The company made the announcement on Tuesday, Sept. 21.
Created in 2000 through the Community Renewal Tax Relief Act, NMTC is run and administered through the U.S. Department of Treasury.
This year, the program allocated a total of $5 billion to Community Development Entities (CDEs) throughout the nation through a competitive and challenging application process, who then use their allocations to further the mission of the program: to encourage and jumpstart investment in low-income census tracts to create jobs, bring new opportunities to qualifying areas, and fill a financing gap for transformative projects.
To fund NMTC, Dakota Business Lending said it will work to fill a financing gap through a process of investing and monetizing tax credits. All projects done through the NMTC program must either be located in a qualifying low-income census tract, be transformative in size or scale to the (re)development of a distressed area, and adaptable to the unique structure and requirements of the program.
The NMTC funds come with great support from various partners and lenders of Dakota Business Lending, who they will work closely with to find eligible projects and investment opportunities. Among those is the Greater Fargo Moorhead Economic Development Corp., which said it looks forward to helping bring the program to potential expansion projects throughout the state.
“While the New Markets Tax Program has been around for a number of years nationally, the Fargo-Moorhead area has had somewhat limited access to this powerful financial tool to support primary-sector business development. We commend the staff at Dakota Business Lending for developing a compelling plan and proposal,” Joe Raso, president and CEO, said in a statement.
“We are pleased to partner with them to leverage our market knowledge of potential expansion projects to demonstrate the type of demand needed to justify a NMTC allocation.”
Over the next several weeks, Dakota Business Lending will be working through the details of the NMTC allocation, seeking qualified projects, and providing more information on the program and how it can help businesses throughout North Dakota.