BBIF Florida is pleased to announce the successful closing of $3 million in New Markets Tax Credit (NMTC) for a small business loan pool that will fund three distinct projects. BBIF received a $20 million NMTC allocation in 2014 from the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund. Projects to be included for funding involve the United Way of Santa Rosa County, and Hall Motorsport of Crestview, FL.
BBIF is providing $3 million of NMTC allocation through its affiliate Community Development Entity (CDE). Capitol One purchased the tax credits and United Bank of Alabama structured the financing for the $3 million fund.
“BBIF is committed to ensuring small businesses and community organizations have access to capital critical to growing their businesses and ensuring success of their organizational missions,” said Inez Long, President and CEO of BBIF. “With this funding, BBIF is proud of our commitment to bring outside resources to groups that need them most.”
United Way of Santa Rosa County received more than $1.3 million to restructure debt undertaken from the 2015 expansion of their administration facilities. Hall Motorsport received $1 million for an expansion of their facilities in Crestview, FL. The third project of the loan pool has yet to be finalized for approval.
The New Markets Tax Credit was enacted by Congress in 2000 as a federal effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities.