The U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI) announced this week that Arkansas Capital Corporation, a CDFI Community Development Entity, is one of 73 applicants selected nationwide to share a total of $3.5 billion in New Markets Tax Credits (NMTCs) for providing financing to low-income communities resulting in economic impacts, job creation, and other community benefits to these distressed areas.
Arkansas Capital Corporation is the only CDE in Arkansas to be awarded NMTCs in this round of allocations. It is the sixth award of allocations for Arkansas Capital Corporation since NMTCs were first awarded in 2003. The announcement brings to $300 million the total amount of NMTCs awarded to Arkansas Capital Corporation to grow business and economic investments into distressed communities in Arkansas and bordering states.
“Through the $265 million in NMTC allocations we’ve received in the previous five rounds, Arkansas Capital Corporation and our partners have produced 1,777 direct jobs and 924 construction jobs in the most distressed census tracts in our state,” said Sam Walls, president of Arkansas Capital Corporation. “These jobs are part of more than 30 projects deployed so far. With our local and state partners, we’ve been able to finance rural manufacturing operations, nonprofit, and educational facilities; and rehabilitated historic buildings in abandoned Main Street corridors,” he said.
Walls continued, “Arkansas Capital Corporation is always looking for impactful projects in Arkansas, especially in low-income areas, where local officials are struggling to find capital for projects to grow their economies, provide jobs, and overall increase the well-being of their communities. The NMTC program is a perfect opportunity to use tax credits to drive investments into the most underserved census tracts.”
Walls says successful deployment of NMTCs is not possible without local and state partners from both the public and private sectors. “Partnerships are key. We must rely on local officials to give us guidance on what projects are needed in their communities that have the most impact and be the best for the long term.”
Walls expects the new round of NMTCs will be deployed by this fall.
Arkansas Capital Corporation and its companies have worked since 1957 to offer flexible capital solutions to meet the unique needs of entrepreneurs, small businesses and other commercial projects underserved by traditional lenders. The NMTC program is an example of Arkansas Capital Corporation’s unique ability to work with the public and private sector to structure innovative financial products that promote catalytic economic development for Arkansas. Since 2010, through more than 200 transactions, Arkansas Capital Corporation has invested $443 million into Arkansas with the following outcomes:
- More than 7,300 direct jobs supported across Arkansas Capital Corporation’s various loan products.
- A $2.3 billion direct financial impact.
- More than $74 million in tax revenue generated for the state.
“New Markets Tax Credits are a phenomenal program,” said Walls. “We are proud to have been able to bring them to the state.”
To read the U.S. Treasury’s New Markets Tax Credits Award Report, click here.