New Markets Tax Credit News Briefs - January 2024

The CDFI Fund Dec. 7, 2023, released a revised CDFI certification application. The new application includes significant modifications after the CDFI Fund received comments on a draft application released a year ago. The modifications include the basic information, legal entity, primary mission and other sections of the application. The CDFI Fund also instituted a phased approach for organizations seeking to become newly certified CDFIs or to renew their CDFI certification. Non-certified CDFIs can apply for certification upon the opening of the submission portal on the CDFI Fund’s Awards Management Information System, Dec. 20, 2023, while currently certified CDFIs must reapply for recertification from Aug. 1-Dec. 20. The CDFI Fund also released the final annual certification and data collection report and abbreviated transaction-level report. The CDFI Fund has a designated page on its website for the CDFI certification.

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CEI Capital Management LLC closed in November 2023 on $10 million of NMTC financing for bio-textile startup MycoWorks toward a 136,000-square-foot manufacturing facility in Union, South Carolina. The financing will help the company make all-natural textiles from mushroom mycelium as well as create 354 new jobs in the rural, northwestern South Carolina city. AMCREF Community Capital and Hampton Roads Ventures also allocated NMTCs. U.S. Bancorp Impact Finance invested in the NMTCs.

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The St. Louis Development Corporation provided $15 million in NMTCs to the $55 million, 150,000-square foot Advanced Manufacturing Innovation Center St. Louis (AMICSTL) in November 2023. AMICSTL is poised to be the focal point of research and innovation. The endeavor also received $7 million in grant funding from the American Rescue Plan Act. Developers are aiming to complete the project in mid-2025.

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The Office of the Comptroller released lists of Community Reinvestment Act performance evaluations that became public in October and November. In October, of the 24 evaluations of national banks, federal savings associations and insured federal branches of foreign banks, 16 were satisfactory and eight were outstanding. In November, the OCC made 42 evaluations public: 29 organizations received satisfactory ratings and 13 received outstanding evaluations.

Journal Category:

New Markets Tax Credit

Authors:

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