The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) recently released data collected on projects financed through the New Markets Tax Credit (NMTC) program. Treasury collects this data, along with audited financial statements, annually from Community Development Entities (CDEs) that have been awarded NMTC allocations within six months of the end of the CDEs fiscal year. These reports are then used to determine if the CDEs are using the NMTC allocations properly in the low-income communities they intend to serve.
In fiscal year 2012, CDEs disbursed nearly $21 billion in Quality Equity Investments (QEIs) proceeds to 3,060 Qualified Active Low-Income Community Businesses (QALICBs). NMTC QEI investments are intended to support a wide range of both real estate developments and operating businesses including charter schools, health care facilities, condos, supermarkets, office buildings, waste management companies, pharmacies, etc. Some significant findings from the CDE survey include:
- A total of 82.8 percent of QALICBs or 2,534 were located in metropolitan areas and received a over $18 billion in NMTC financing. 17.2 percent of QALICBs or 526 were located in non-metropolitan areas and received a over $2.5 billion in NMTC financing;
- 45.9 percent of QALICBs, or 1,405, were “real estate QALICBs”, or those in which the principal activity is real estate development or leasing. These QALICBs received just over $12.5 billion in NMTC financing;
- 50.8 percent of QALICBs were “non-real estate QALICBs”, or operating businesses and received over $7.5 billion in NMTC financing
To view the CDFI Fund press release, click here.
To read a summary report listing all QALICBs financed by CDEs through FY 2010, click here.
To view a map of all QALICBs financed by CDEs through FY 2010, click here.