ACROSS MISSISSIPPI — The Community Development Financial Institutions Fund (CDFI Fund) announced the recipients of the 2009 Round of New Market Tax Credits (NMTC) allocations, the law firm of Watkins Ludlam Winter & Stennis reports.
The awarded allocation amounts ranged from $4 million to $115 million. Six of the allocatees with a national service area have designated Mississippi as one of their predominant markets. These allocation award amounts ranged from $10 million to $100 million, totaling $320 million in allocation.
Generally, NMTC act as a bridge between traditional finances for certain types of projects or businesses located in low income communities. The program was passed under the Clinton administration and is administered by the CDFI Fund. The program works to bring capital to low-income communities that have inadequate access to capital by compensating investors for perceived risk associated with investing in low-income communities. NMTC are used to finance projects that are generally commercial in nature. They can be used to finance real estate projects or certain types of businesses.
The designation of Mississippi as one of the predominant markets of the allocatees means that the allocatees will be looking for opportunities to invest in projects or businesses meeting the requirements of the NMTC program in low-income communities in Mississippi.