NMTC Allocations

CDFI Fund Releases CY 2020 NMTC Allocations

On September 1st, the Community Development Financial Institutions (CDFI) Fund announced the recipients of the New Market Tax Credit awards for CY 2020. One hundred community development entities (CDEs) received a total of $5B in allocations from the CDFI Fund in 2021 for their future New Markets investments. 

The 100 CDEs selected to receive NMTC allocations showcase the wide diversity of the program. There are organizations that serve communities across the country and organizations that serve just one small county. Some organizations are focused on urban centers whose inner cities need support, while others narrow in on rural communities that used to be manufacturing hubs. The rural organizations represent sixteen percent of the organizations chosen for awards. Nine of the organizations selected are receiving a CDFI Fund award for the first time. This is the latest in a trend of increased efforts to give new CDEs a chance to achieve their goals. Another notable statistic of this round of awards is the 16 minority-owned CDEs that received awards. Although this number has wavered over the past few years, the consistency shows the dedication to uplifting Native and minority voices.

The CDFI Fund, which is a part of the U.S. Department of the Treasury, provided 48 percent of applicants with their requested funding. The allocation provided to each recipient depended on the size and goals of the organization. The CDFI Fund has plans to incentivize target states that have not applied for the awards on the same level as other states. They include Texas, Georgia, Nevada, Tennessee, Virginia, Florida, Kansas, West Virginia, New Mexico, and Wyoming. The $5 billion total has the potential to create significant impact addressing problems such as housing access, healthcare access, unemployment, and manufacturing job loss.

It is clear that there is an exciting pool of allocatees this year. We look forward to seeing the impact that this diverse group of organizations will create in their communities using the NMTC program. To follow exciting developments in the NMTC space, check out LifeCity’s blog. 

LifeCity helps organizations manage, track, and market their impact. We specialize in third-party impact validation for NMTC investments and can help your organization maximize and showcase the impact of its NMTC investments. Please reach out and let us know how we can help you create impact in your communities.