(NEW BRUNSWICK, NJ) — Community Capital of New Jersey (NJCC), the state of New Jersey’s largest community development financial institution (CDFI), announced that it has received $40 million in rewards from the CDFI Fund’s New Markets Tax Credit (NMTC) program. of the United States Treasury Department. This investment is part of a larger $5 billion funding round under the nationwide NMTC Awards to support economic development initiatives in rural and urban low-income communities.
“This award will support our lending programs and services that promote equitable and enriched communities for New Jersey residents who need it most,” said Bernel Hall, president and CEO of New Jersey Community Capital. “We are honored to receive this funding and to be recognized as a leading CDFI that actively invests in small businesses, economic development, job creation and more. “Special thanks to the U.S. Department of Treasury’s CDFI Fund for once again entrusting New Jersey Community Capital with this impactful award.”
The funding comes as the NJCC celebrates an impactful fiscal year, including the launch of an Equitable Small Business initiative in partnership with the New Jersey African American Chamber of Commerce to provide loans to 16 New Jersey-owned small businesses. people of color. The NJCC has used previous NMTC awards to support area boys and girls clubs, the CompleteCare Bridgeton redevelopment, and the Mill One Social Profit Center – an affordable mixed-use workspace for nonprofits and local artists.
Since the inception of the NMTC program, the NJCC has deployed $249,500,000 in NMTC grants to projects across the state of New Jersey. The NJCC is one of 107 awardees who have collectively deployed more than $62.9 billion in investments in low-income communities and businesses; with impacts such as creating or sustaining more than 857,000 jobs and building or rehabilitating nearly 239 million square feet of commercial real estate in fiscal year 2021. Winners are headquartered in 35 Separate states and the District of Columbia with more than 20 percent of investments made in non-metro communities.
The NJCC is listed as Community Loan Fund of New Jersey, Inc. in the CDFI NMTC database.
New Jersey Community Capital (NJCC) is a nonprofit Community Development Financial Institution (CDFI) that provides an innovative toolkit of financial products, programs, and services to advance equity and opportunity in underserved communities. The NJCC supports the preservation and development of affordable housing and sustainable community development enterprises that increase jobs, improve education, and strengthen neighborhoods to ensure communities can thrive.
The New Business Tax Credit program, established by Congress in December 2000, provides individual and business taxpayers with a non-refundable federal income tax credit for equity investments in financial intermediaries known as Community Development Entities (CDEs). The CDEs that receive tax credit allocation authority under the program are corporations or national partnerships that provide loans, investments, or financial advice in low-income urban and rural communities. The tax credit granted to the investor amounts to 39% of the cost of the investment and is claimed over a period of seven years. The CDEs in turn use the capital raised to invest in low-income communities. The CDEs must submit an application to the CDFI Fund each year to compete for the authorization of the allocation of the tax credit program for new contracts. Since the inception of the NMTC program, the CDFI Fund has completed 18 allocation cycles and awarded 1,461 grants totaling $71 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion in Special Allocation Authority used for the recovery and redevelopment of the Gulf Opportunity Zone.
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