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$65 Million to Stimulate Growth and Job Creation

July 23, 2020–As people across the region look ahead to an economic recovery from the COVID-19 pandemic, a federal program stands ready to help with development and job creation. The New Markets Tax Credits (NMTC) Program has already demonstrated a high level of success aiding in economic recovery in underserved areas. MoFi first used the NMTC Program just over a decade ago, and in that time it has helped dozens of projects worth hundreds of millions of dollars, creating or retaining thousands of jobs. The U.S. Treasury has awarded MoFi $65 million in New Markets Tax Credits to lend to businesses and projects in Montana, Idaho and Wyoming.

The NMTC Program was authorized under the Community Renewal and Tax Relief Act of 2000 to help stimulate private investment and economic growth in low-income and rural areas. Communities and local businesses that can benefit from the program typically are unable to access capital for projects that help create jobs and growth in these areas.

NMTC funding is awarded once a year through a highly competitive process by the Treasury. Since 2008, MoFi has received NMTC awards totaling $631 million, and has financed more than 45 projects across Montana, Idaho and Wyoming that created and retained nearly 4,400 jobs. Prior awards have helped build or expand manufacturing facilities, community food banks, medical centers, grocery stores, homeless shelters, mixed-use buildings and more.

Legislators from across the region have shared their support of the NMTC program:

  • “Whether it’s our bars and breweries, mom-and-pop shops or outdoor recreation companies, Montana’s small businesses are the heart and soul of our local economies and our state. During this time of crisis, when so many of these businesses are facing uncertain futures, it’s absolutely critical that we make investments into Montana’s main streets. This tax credit will help MoFi provide businesses with the resources they need to be successful, create jobs and opportunities, and help jump start our state’s economy.” – Montana Senator Jon Tester
  • “This critical funding will help create jobs and support small businesses across Montana’s communities. I will continue working to ensure Montanans can get back to work and keep our small businesses up and running.” – Montana Senator Steve Daines
  • “The bipartisan New Markets Tax Credit has a strong history of bringing investment and jobs to rural and underserved areas, with studies showing $8 of private investment for every $1 of federal support.  MoFi has proven to be a tremendous resource and asset for Idaho small businesses and communities, and I look forward to continuing to support the New Markets Tax Credit and MoFi’s efforts in Idaho.” – Idaho Senator Mike Crapo
  • “The New Market Tax Credit Program is a fantastic tool for reinvigorating economies in rural and low-income communities. I am pleased to congratulate MoFi on their recent NMTC award and I’m eager to follow along as the capital is invested into communities across Idaho.” – Idaho Congressman Mike Simpson

While the NMTC Program has bipartisan support in Congress, it is not permanent. It has, however, been extended several times because of its positive impact on businesses and communities. Most recently, it received a one-year extension at the end of 2019, along with a sizeable increase in tax credit authority, from $3.5 billion to $5 billion annually.

Work is underway to extend the NMTC Program again at the end of 2020, and legislation to make it permanent is gathering support in both houses of Congress and from both sides of the aisle.

“It’s challenging to attract economic investment to low-income communities in good times, but especially so during a pandemic. Having the NMTC permanently extended would give us a predictable source of capital to fuel this region’s economic recovery through COVID-19 and beyond,” said Dave Glaser, MoFi’s President. “We applaud these members of Congress for their support, and advocating for federal resources to stimulate economic growth and job creation in their states.”

MoFi works with community leaders and local businesses to identify projects that will have the greatest impact and best benefit from the program. MoFi sells the tax credits to investors, turning them into cash, and then puts that cash into projects as a subsidy.

MoFi is actively reviewing projects for the $65 million allocation, which will be deployed in qualified areas of Montana, Idaho and Wyoming. Communities, businesses and nonprofits that have projects of at least $5 million in value with a gap in financing are encouraged to contact MoFi at 844-728-9234 or mofi.org to see if they qualify.

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