The Local Initiatives Support Corporation (LISC) has announced that it has received a $50 million allocation of federal New Markets Tax Credits (NMTC) to promote quality jobs, better health, and local economic growth, with a focus on underserved urban and rural communities.
Part of an allocation of $3.5 billion in NMTCs awarded by the U.S. Department of Treasury's CDFI Fund to seventy-six organizations, the credits will help create community assets and job opportunities in neighborhoods where decades of racial discrimination have led to widespread disinvestment and high unemployment. The credits bring LISC's total NMTC allocation to more than $1.1 billion — the largest in the program's twenty-year history.
Projects supported by LISC-directed NMTCs include MLK Gateway — a $21.7 million tech-driven economic development project in Washington, D.C.'s Anacostia neighborhood led by the Menkiti Group, a local developer, and management consulting firm Enlightened, Inc. that received $8 million in New Markets credits from LISC, more than $2 million in additional LISC loans and equity investments, and nearly $3 million in Opportunity Zone capital.
"New Markets Tax Credits help us fill capital gaps for women- and minority-owned businesses, rural communities, and communities of color that are working to overcome long histories of discrimination," said LISC president and CEO Maurice A. Jones. "This is particularly important now as we collaborate with local partners to address COVID-19 and narrow the disparities in health and wealth that affect millions of American families."
"These investments have a ripple effect that goes well beyond any one business or project," said Kevin Boes, president and CEO of New Markets Support Company (NMSC), a LISC affiliate that manages the organization's NMTC work. "In places that the mainstream market does not directly serve, they help revitalize community assets, attract new businesses, expand employment, and build local wealth."
(Photo credit: Local Initiatives Support Corporation)