New Markets Tax Credit News Briefs - December 2017

Friday, December 8, 2017

Construction for a $34 million business incubator, The Hatchery, broke ground Oct. 24 on Chicago’s west side. The 67,000-square-foot facility will help local food and beverage entrepreneurs start on the road to success. The facility is anticipated to create approximately 150 jobs in its first year. The Hatchery is scheduled for completion in 2018 and will provide space for 56 kitchens and room for approximately 75 to 100 food industry entrepreneurs. There will also be seminars, workshops and one-on-one business consulting. Financing for development includes $8.5 million in new markets tax credits (NMTCs).

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Updated 2011-2015 American Community Survey low-income community data for the NMTC program could be used beginning Oct. 31, with a one-year transition period in which applicants can alternatively choose to use 2006-2010 data, according to the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund also announced that Bank Enterprise Award Distressed Community Data will be released next spring and both CDFI and Native American CDFI Assistance program data will be released next summer.

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The CDFI Fund announced Nov. 1 the opening of the fiscal year 2018 application period for the CDFI Bond Guarantee Program. A notice of guarantee availability was published in the Federal Register for as much as $500 million in bond guarantee authority available to eligible CDFIs, pending Congressional authorization. Bonds are used to extend capital for community development financing and long-term community investments. Qualified issuer applications must be submitted by Jan. 9, 2018, and guarantee applications must be submitted by Jan. 23, 2018. Bond issues have a minimum size of $100 million each. Multiple CDFIs may pool together in a single $100 million bond issuance. The notice is available at www.newmarketscredits.com. 

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