Monday, June 22, 2015

CCLF is Awarded New Market Tax Credits for the First Time

ChicagoCommunity Loan Fund
U.S. Treasury Awards Chicago Community Loan Fund
$15 Million in New Market Tax Credits
Chicago Community Loan Fund (CCLF) is a first time recipient of a CDFI Fund New Markets Tax Credit (NMTC) allocation in the amount of $15,000,000. The announcement was published in the NMTC Program Award Book CY 2014 earlier this week. The New Markets Tax Credit Program helps economically distressed communities attract private investment capital. This federal tax credit helps to fill project financing gaps by incentivizing larger investments that would otherwise not be possible. Communities benefit from the jobs associated with these investments as well as retail and community facilities that offer goods and services such as childcare, healthy foods, better health care, higher quality clothing and housewares among many others.
CCLF customer Country Squire Foods in the Village of Park Forest, IL is providing 22 jobs and healthy foods in the community.
"Over its fifteen year history, the New Markets Tax Credit program has successfully fostered competition for private sector investment into low-income communities that lack access to the capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The investments made possible by today's awards will have significant impact nationwide." - Annie Donovan CDFI Fund Director
CCLF will use its 2014 NMTC allocation to make investments in mixed-use commercial real estate and community facilities projects that bring goods (including healthy foods), services and jobs to low-income communities in distressed Chicagoland neighborhoods. For the past 24 years, CCLF has played a strong role as one of the leading predevelopment lenders in Chicagoland. However, given our recent growth in loan pool assets driven by the demand for longer-term financing, this NMTC allocation will allow us to better serve our clients with larger, longer-term financing products.
"While many communities in Chicago have rebounded from the recession, this same level of recovery has not been seen in lower-income communities, especially in communities of color. This new source of capital for CCLF will help us invest in projects that address challenges holding back communities of color such as higher unemployment levels and severe disinvestment in commercial corridors," said Calvin L. Holmes, President of CCLF.
For more information on NMTC click here.
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