About
Established in 2000, the federal NMTC program incentivizes community development and economic growth through tax credits intended to attract private investment to underinvested communities. The program is administered by the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) and allocated by local community development entities (CDEs) across the county. CDEs are corporations or partnerships that act as intermediaries to provide loans, investments, or financial counseling to businesses and projects in low-wealth communities. Community organizations can get certified as a CDE. Individuals or corporations who purchase equity in the CDE receive a federal income tax credit. Using the capital from investments, CDEs can make loans to small businesses operating in low-wealth communities at below-market rates and with more flexible terms and features.
Stakeholders
Community-based or Nonprofit Organizations
Government or Public Agency
Strategies in Action
Small Business Improvement Fund – Chicago, IL
Small Business Improvement Fund was approved by the City of Chicago in 2021. It aims to make more than $60 million available through grants. It is financed through TIF revenues, with more than $100 million [...]
