| CDFI Fund Opens CY 2020 Round of New Markets Tax Credit Program | | https://www.cdfifund.gov/Lists/CDFI News/AllItems.aspx | https://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=393 | CDFI Fund Opens CY 2020 Round of New Markets Tax Credit Program | <p><em>Increased Allocation of $5 Billion to be made Available this Round</em></p><p>The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) released today the Notice of Allocation Availability (NOAA) for the calendar year (CY) 2020 round of the New Markets Tax Credit Program (NMTC Program). The CDFI Fund is providing the NOAA on its website in anticipation of its publication in the Federal Register on September 23, 2020.<br></p><p>Pursuant to the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (Public Law 116-94), the NOAA makes up to $5.0 billion in tax credit allocation authority available for the CY 2020 round, an increase of $1.5 billion more than the $3.5 billion in New Market Tax Credits (NMTCs) initially authorized for allocation in CY 2019. <br></p><p>The NMTC Program spurs investment of private sector capital into distressed communities by providing a tax credit to corporate or individual taxpayers who make Qualified Equity Investments (QEIs) in designated Community Development Entities (CDEs). The CDEs, in turn, invest the capital raised into businesses in low-income communities. The credit provided to the investor totals 39% of the investment in a CDE and is claimed over a seven-year credit allowance period. <br></p><p>The CDFI Fund has made 1,254 awards—totaling $61 billion in tax credit allocation authority—to CDEs through the NMTC Program since the program's inception. More information about the NMTC Program can be found on the program's webpage, <a href="http://www.cdfifund.gov/nmtc">www.cdfifund.gov/nmtc</a>, or in the program's fact sheet. <br></p><p><strong>Significant Updates</strong></p><p>The CDFI Fund is implementing several changes to the NMTC Program in the CY 2020 NOAA, which include:</p><ul><li><strong>Prior QEI Issuance Requirements: </strong>Prior-year NMTC Allocatees will be subject to revised minimum thresholds for QEI issuance and closing of Qualified Low-Income Community Investment (QLICIs) with respect to their prior-year NMTC Allocations. <br></li></ul><ul><li><strong>CY 2020 Application Registration</strong>: CY 2020 Round Applicants are required to complete and save an Application Registration in the CDFI Fund's Awards Management Information System (AMIS) by a specified deadline in order to submit the CY 2020 Allocation Application. Applicants that do not complete the Application Registration by the specified deadline, will not be able submit a CY 2020 Round Allocation Application in AMIS.<br></li></ul><p>The CDFI Fund has developed specific guidance addressing industry requests and inquiries related to compliance and reporting requirements during the COVID-19 pandemic, and has included this information in updated NMTC Application Frequently Asked Question (FAQ) and NMTC Compliance FAQ documents. The updated FAQ documents can be accessed at:</p><ul><li><strong><a href="/Documents/CY%202020%20NTMC%20Program%20Application%20FAQ%20FINAL%2017SEPT2020.pdf" target="_blank">NMTC Application FAQs</a></strong></li><li><strong></strong><a href="/Documents/NMTC%20Compliance%20Monitoring%20FAQ%2016SEPT2020%20FINAL.pdf" target="_blank"><strong>NMTC Compliance </strong><strong>FAQs</strong></a></li></ul><p><strong>Important CY 2020 Deadlines </strong></p><ul><li><strong>CDE Certification Application</strong>: October 6, 2020</li><li><strong>NMTC Application Registration in AMIS</strong>: October 9, 2020</li><li><strong>NMTC Allocation Application in AMIS</strong>: November 16, 2020</li><li><strong>QEI Issuance and QLICI Requirements</strong>: January 15, 2021<br></li></ul><p>Please refer to the NOAA for more details about these and other deadlines. <br></p><p><strong>Application Materials </strong></p><ul><li>NMTC application materials and resources, including a link to the application, are available at <a href="http://www.cdfifund.gov/nmtc">www.cdfifund.gov/nmtc</a> under <a href="/programs-training/Programs/new-markets-tax-credit/Pages/apply-step.aspx">How to Apply Step 2: Apply</a>.</li><li>CDE Certification application materials and resources are available at <a href="http://www.cdfifund.gov/cde">www.cdfifund.gov/cde</a> under <a href="/programs-training/Programs/new-markets-tax-credit/Pages/cde-certification-step.aspx#step1">How to Apply Step 1: Certification</a>. <br></li></ul><p><strong>Learn About Applying to the NMTC Program </strong></p><p>To provide more information about the NMTC Program and the application process, the CDFI Fund has made available pre-recorded webinars demonstrating: 1) the electronic application's features and the submission process in AMIS; and 2) the process for completing the Application Registration process in AMIS. The webinars can be access on the NMTC Program page, <a href="http://www.cdfifund.gov/nmtc">www.cdfifund.gov/nmtc</a>, under <a href="/programs-training/Programs/new-markets-tax-credit/Pages/apply-step.aspx">How to Apply Step 2: Apply</a>. <br></p><p>In addition to the detailed information that is available through the NOAA, NMTC Allocation Application, NMTC Allocation Application FAQ, and presentations, the CDFI Fund will conduct two one-hour conference calls to answer application questions. Participants will be able to ask questions directly on the calls, or they may submit questions for consideration at least one business day in advance via a service request in AMIS. Please see below for the dates and times for each call.<br></p><p><em>NMTC Application Conference Calls </em></p><ul><li>Tuesday, September 29, 2020 at 2:00 pm Eastern Time</li><li>Thursday, October 1, 2020 at 1:00 pm Eastern Time<br></li></ul><p>The dial-in number and passcodes are the same for both calls. <strong>The dial-in number is 1-888-455-1591 and the passcode is 2907994.</strong> No prior registration is necessary. Requests for reasonable accommodations under section 504 of the Rehabilitation Act should be directed to Jay Santiago at 202-653-0300 no later than 48 hours before the conference calls begin.<br></p><p><strong>Questions</strong></p><p>For more information on the NMTC application or certification as a CDE, please contact the CDFI Fund's Help Desk by submitting a service request in AMIS or by telephone at 202-653-0421.<br></p><p>Learn more about the CDFI Fund and its programs at <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.<br></p> | 2020-09-22T04:00:00Z | Updates | 393 | | |
| CDFI Fund Awards $25.2 Million to Banks that Increased Investments in Severely Distressed Communities | | https://www.cdfifund.gov/Lists/CDFI News/AllItems.aspx | https://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=392 | CDFI Fund Awards $25.2 Million to Banks that Increased Investments in Severely Distressed Communities | <p><em>Recipients Collectively Increased Lending and Services to Nation's Most Distressed Areas by $455 million</em></p><p><strong>Washington, DC</strong> – The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced today nearly $25.2 million in awards to 138 FDIC-insured banks, through the fiscal year (FY) 2020 round of the Bank Enterprise Award Program (BEA Program), for increasing investments to communities experiencing severe economic distress across the nation. <span style="font-size:11pt;font-family:"calibri", sans-serif;"></span>All of the nearly $25.2 million awarded will be reinvested into economically distressed communities and CDFIs, generating further economic opportunity. <br></p><p>Through the BEA Program, the CDFI Fund provides monetary awards to FDIC-insured depository institutions that successfully demonstrate an increase in their investments in CDFIs or in their own lending, investing, or service activities in the most distressed communities. BEA Distressed Communities are defined as those communities where at least 30% of residents have incomes that are less than the national poverty level and where the unemployment rate is at least 1.5 times the national unemployment rate. The CDFI Fund <a href="/news-events/Pages/news-detail.aspx?NewsID=350&Category=Updates">received 144 applications</a> requesting over $143 million in FY 2020 BEA Program round funding.<br></p><p>"With today's announcement, the BEA Program has provided more than $546 million in total awards to depository institutions since the program's inception," said CDFI Fund Director Jodie Harris. "Applications this year increased 23% compared to FY 2019, with over $143 million requested in award dollars. BEA Program award recipients continue to demonstrate their ongoing commitment to serving the nation's most distressed areas, including $442 million in lending, investments, and services provided to residents and businesses in Persistent Poverty Counties in FY 2019."<br></p><p>Collectively, during the one-year assessment period for the FY 2020 BEA Program round, the 138 award recipients increased: </p><ul><li>loans and investments in distressed communities by $365.2 million; </li><li>loans and deposits to CDFIs by $43.3 million; </li><li>equity-like loans and grants to CDFIs by $31.7 million; and</li><li>the provision of financial services in distressed communities by $15.1 million.<br></li></ul><p>Of the 138 depository institutions awarded funding, 86 have committed to investing approximately $2.86 million, or 11.4% of total FY 2020 appropriated funds, in Persistent Poverty Counties, which exceeds the Congressional mandate of 10%. Persistent Poverty Counties, per Congressional guidance, are those counties that have experienced poverty rates of at least 20% over the past 30 years as measured by the 2011–2015 five-year data series available from the American Community Survey of the U.S. Census Bureau.<br></p><p><strong>Related Materials</strong></p><ul><li><a href="/Documents/2020%20BEA%20Award%20Book%20for%20APPROVAL%20updated%2009032020.pdf">FY 2020 BEA Program Award Book</a><br></li><li><a href="/Documents/FY%202020%20BEA%20-%20CDFI%20Partner%20List%20for%20Award%20Recipients.pdf">FY 2020 BEA Program Award Recipient Partnerships with CDFIs</a><br></li><li><a href="/awards/state-awards/Pages/default.aspx">Searchable Awards Database</a><br></li></ul><p><strong>About the CDFI Fund</strong></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $3.6 billion to CDFIs, community development organizations, and financial institutions through: the BEA Program; the Capital Magnet Fund, the Community Development Financial Institutions Program, including the Healthy Food Financing Initiative; the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $61 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds in the amount of $1.61 billion through the CDFI Bond Guarantee Program.<br></p><p>To learn more about the CDFI Fund and its programs, please visit the CDFI Fund's website at <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.<br></p> | 2020-09-15T04:00:00Z | Press Releases | 392 | | |
| CDFI Fund Releases Application Demand for FY 2020 Round of Capital Magnet Fund | | https://www.cdfifund.gov/Lists/CDFI News/AllItems.aspx | https://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=391 | CDFI Fund Releases Application Demand for FY 2020 Round of Capital Magnet Fund |
<p class="MsoNormal">The U.S. Department of the Treasury’s Community Development
Financial Institutions Fund (CDFI Fund) released today the application data for
the fiscal year (FY) 2020 round of its Capital Magnet Fund program. A
total of 137 organizations submitted applications requesting more than $642.2 million
in funding. The applicants propose to serve 50 states, the District of Columbia,
Guam, and Puerto Rico.<span> </span>In total, 53% of
the applicants are certified Community Development Financial Institutions
(CDFIs), and the remaining 47% of the applicants are non-profit affordable
housing organizations. </p><p class="MsoNormal">Through the Capital Magnet Fund, the CDFI Fund competitively
awards funds to CDFIs and qualified non-profit housing organizations. These
awards can be used to finance affordable housing activities, as well as related
economic development activities and community service facilities. The Capital
Magnet Fund aims to attract private capital to economically distressed
communities, including underserved rural areas. Funding for the Capital Magnet
Fund comes from allocations made by the Government-Sponsored Enterprises Fannie
Mae and Freddie Mac and varies from year to year. Up to $173.8 million is
available for awards for the FY 2020 round.</p><p class="MsoNormal">The FY 2020 application period closed on July 27, 2020. The
CDFI Fund currently expects to announce the awards in early 2021. For
more information about the Capital Magnet Fund, visit the CDFI Fund’s website
at <a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.cdfifund.gov_cmf&d=DwMFaQ&c=Tuerg-yNTgVjZ4qfQI_XUAo-m_1Vz9aewAZbk-XJGzU&r=B0nfcGTYMJiyCp3IkClHGBM6C4FH2RrjMrB1JRKGJsM&m=Zg2Tc_gcm5FsbABlC_FLpdRZXuGprMma_L95pDc5N2U&s=Yccr__pZQkDj8TtbKEazcynUrPxpgwOj09cSgoNKoy8&e=">www.cdfifund.gov/cmf</a>.</p> | 2020-09-10T04:00:00Z | Updates | 391 | | |
