Dakota Business Lending has been selected by the US Treasury Department’s Community Development Financial Institutions (CDFI) Fund to receive $30 million in New Business Tax Credit (NMTC) allocation. This is their second NMTC award. They were awarded $30 million in 2021 and remain the first and only North Dakota-based fundraising entity to be chosen and one of the nation’s Top 100 Community Organizations recognized this year.
The NMTC is managed and administered by the United States Department of Treasury. This year, the program awarded a total of $5 billion to 107 of 199 Community Development Entity (CDE) applicants across the country through a competitive and challenging application process, who then use their allocations to continue the program’s mission to encourage and kick-start investment in low-income census tracts to create jobs, provide new opportunities in eligible areas, and fill a funding gap for transformative projects.
Dakota Business Lending has awarded its first full prize of $30, received in September 2021, to four eligible North Dakota businesses in less than 11 months. The program had a direct impact on the $107 million project and helped create and retain 325 permanent jobs for citizens across the state. “Given our ability to deploy funds in such a short time, it is evident that the demand for a unique funding program like NMTC is much higher than expected,” commented Steve Dusek, President and CEO. “We are excited to use this second allocation to continue to meet this demand, provide this unique opportunity for businesses, and expand the economic impact even further.” Dakota Business Lending will continue to maximize and expand economic impact by encouraging the concept of “paying it forward,” asking businesses aided by the program to “repay” kindness by financially supporting local organizations in need.
As North Dakota’s leading SBA 504 lender for the past 12 years, Dakota Business Lending provides creative and affordable small business financing solutions and technical assistance that promote economic development and prosperity in our communities.
Dakota Business Lending has several projects under review and is also working on applying for the next round of funding. Please contact one of Dakota Business Lending’s Loan Officers with any potential projects and visit www.dakotabusinesslending.com/nmtc for more information. The organization looks forward to providing this opportunity and continuing to impact this great state.
About Dakota Business Lending
Founded in 1982, Dakota Business Lending is the oldest, largest and most experienced 504 CDC in North Dakota. With staff throughout North Dakota and Montana, Dakota Business Lending serves North Dakota, Montana and five western Minnesota counties. The mission of this private, not-for-profit entity is to provide small business financing solutions through collaborative partnerships in a supportive and creative environment that grows the economy and creates or maintains quality jobs. Since its inception, Dakota Business Lending has provided more than $550 million in loans, with a total project impact of over $1.2 billion, to small businesses and local economies.
About the New Market Tax Credit Program
The New Business Tax Credit program, established by Congress in December 2000, provides individual and business taxpayers with a non-refundable federal income tax credit for equity investments in financial intermediaries known as Community Development Entities (CDEs). The CDEs that receive tax credit allocation authority under the program are corporations or national partnerships that provide loans, investments, or financial advice in low-income urban and rural communities. The tax credit granted to the investor amounts to 39% of the cost of the investment and is claimed over a period of seven years. The CDEs in turn use the capital raised to invest in low-income communities. The CDEs must submit an application to the CDFI Fund each year to compete for the authorization of the allocation of the tax credit program for new contracts. Since the inception of the NMTC program, the CDFI Fund has completed 18 allocation cycles and awarded 1,461 grants totaling $71 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion in Special Allocation Authority used for the recovery and redevelopment of the Gulf Opportunity Zone. To learn more about the New Market Tax Credit program, please visit www.cdfifund.gov/nmtc.