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Enhanced Community Development Awarded $40 Million in New Markets Tax Credit Allocation from U.S. Treasury Department

October 17, 2023

Enhanced Community Development, a subsidiary of Enhanced Capital, announced that it has been awarded $40 million in New Markets Tax Credits (NMTC) allocation. This award marks the ninth time Enhanced Community Development has received a federal NMTC allocation, resulting in a cumulative total of $430 million in federal NMTC allocation since 2006.

The U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund announced the allocation to Enhanced Capital as part of a $5 billion award to 102 Community Development Entities (CDEs) in the 2022 round of the NMTC Program.

The NMTC Program, a federal initiative established in 2000, stimulates economic growth and job creation by providing tax credits to investors who invest in CDEs. CDEs that receive the tax credit allocation authority through the NMTC Program include domestic corporations or partnerships that provide loans, investments, or financial counseling within low-income urban and rural communities.

"We're thrilled to receive this new allocation of $40 million in New Markets Tax Credits, which further strengthens our commitment to revitalizing and transforming communities," said Richard Montgomery, Managing Partner at Enhanced Capital. "The New Markets Tax Credit Program has a proven track record of attracting private capital to areas facing economic challenges. At Enhanced Capital, we take pride in strengthening and creating economic opportunities for underserved communities."

"Enhanced Community Development’s New Markets Tax Credit award amplifies our mission of stimulating jobs and growth in small businesses and providing community services in economically underserved urban and rural areas," highlighted Catherine Blume, Vice President at Enhanced Capital. “We believe that resilient communities build a stronger nation, and we're proud this award enables us to generate transformative change."

Over $76 billion has been awarded through the NMTC Program, generating $8 in private investment for every $1 invested by the federal government. As of the end of the fiscal year 2022, NMTC Program recipients have invested more than $62.9 billion in low-income communities and businesses, creating or retaining over 857,000 jobs and constructing or rehabilitating nearly 239 million square feet of commercial real estate.[1]

As of October 2023, Enhanced Community Development has invested over $700 million in over 100 businesses across the United States. Projects that have received support from Enhanced Capital through the NMTC Program range from rehabilitating a Louisiana culinary institute to constructing a Nevada cinema in an impoverished, persons-of-color community.

[1] “Treasury Department Announces $5 Billion in New Markets Tax Credit The U.S,” Department of the Treasury, September 22, 2023.

About Enhanced Community Development:

Enhanced Community Development (ECD), a subsidiary of Enhanced Capital, is a federally designated Community Development Entity focused on the financing needs of businesses and developments located in or serving low-income communities. ECD proudly participates in the federal New Markets Tax Credit (NMTC) Program and a variety of state NMTC Programs. ECD is an Equal Opportunity Provider. Since 2006, ECD has deployed more than $700 million in federal and state NMTC allocation to job-creating businesses and organizations in economically distressed communities.