ABOUT THE NEW MARKETS TAX CREDIT PROGRAM

The New Markets Tax Credit (NMTC) Program was established to stimulate economic growth in underserved communities by encouraging private sector investment. Administered by the U.S. Department of the Treasury, this program provides tax credits to investors who fund Community Development Entities (CDE), who in turn invest these funds into projects in low-income areas that create quality jobs and provide needed goods and services such as healthcare and affordable/nutritious food.

Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers. The NMTC Program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies.

The NMTC Program bridges the gap between private investment and the critical need for resources in areas that traditional funding often overlooks. HRV uses the capital raised from the NMTC to make loans to businesses in these low-income communities throughout the country. NMTC-financed loans provide borrowers with financing at below market interest rates and often include non-traditional features unavailable through conventional financing.