Award Will Spur Projects Focused on Education and Job Creation in Disinvested Communities
The US Department of Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has awarded Cinnaire a $60 million New Markets Tax Credit (NMTC) Allocation. Since 2009, Cinnaire is an eight-time NMTC recipient with awards totaling more than $419 million. Cinnaire manages an additional $251 million in NMTC allocation for partner organizations.
Over the history of the program, Cinnaire has leveraged NMTC investments to finance 42 high-impact projects in disinvested communities with a total development cost of $1.46 billion. This award advances Cinnaire’s goal of creating healthy communities, spurring economic development and wealth creation, and creating jobs by incentivizing private sector investors to partner in its community financing efforts. Cinnaire plans to leverage the $60 million allocation to support education and job creation in disinvested communities across its nine-state footprint.
“The New Markets Tax Credit has proven to be one of the most successful models for a public-private partnership, driving capital to America’s most disinvested neighborhoods,” said Mark McDaniel, Cinnaire president & CEO.
“With this year’s award, we are focusing on organizations that support education, including early childhood, school-age children and adults seeking vocation training opportunities. We also plan to support projects that create job opportunities for individuals without a college degree or other barriers to obtaining employment. We look forward to partnering with and providing NMTC allocation to projects that will help all people have access to the tools and opportunities they need to succeed.”
The NMTC is a uniquely bipartisan program, supported by members of congress throughout Cinnaire’s footprint, that helps drive resources and investment to areas that need it most.
“We’re grateful to the members of congress on both sides of the aisle for their steadfast support of the New Markets program and helping CDFIs to access these important resources,” McDaniel said.
The US Treasury’s CDFI Fund announcement brings the total amount awarded through the NMTC Program to $66 billion. Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government. Through the end of fiscal year 2020, NMTC Program award recipients deployed almost $56 billion in investments for communities and businesses earning low incomes, with impacts such as the creation or retention of nearly 871,000 jobs and the construction or rehabilitation of nearly 231.5 million-square-feet of commercial real estate.
“These investments will create jobs and spur economic growth in urban and rural communities across the country,” Secretary of the U.S. Treasury Janet L. Yellen said. “Many of the communities that will receive these funds have confronted economic challenges over many decades. Challenges which have been made more difficult by a lack of investment. It’s critical that Congress sustain these investments over time by making the New Markets Tax Credit Program permanent.”
Cinnaire has deployed previous NMTC allocations to help launch impactful projects nationwide.
- Fintech Building Supports Financial Technology in Newark, DE
- Marygrove Early Childhood Center, Detroit, MI
- Mott Community College Culinary Arts Institute, Flint, MI
- New Market West Early Childhood and Health Care Services, Philadelphia, PA
- Paul’s Place-Groundwork Kitchen, Baltimore, Maryland
- Salvation Army Freedom Center, Chicago, IL
- Southwood County YMCA in Rural Wisconsin Rapids, WI