WASHINGTON, D.C. — New federal resources have been awarded to the Cleveland New Markets Investment Fund II, LLC (CNMIF II). U.S. Sen. Sherrod Brown (D-OH) today announced that CNMIF II was awarded a $30 million New Markets Tax Credit (NMTC) through the U.S. Treasury Department. The NMTC program helps attract investment in underserved regions that would otherwise suffer from a lack of financing.
“Small businesses throughout Northeast Ohio are critical to maintaining and strengthening the state’s economy,” Brown said. “The Cleveland New Markets Investment Fund II has a proven track record in helping to leverage private and public financing in order to create jobs and promote economic growth. This tax credit could help build upon Cuyahoga County’s existing strengths and transform the area economically.”
According to its website, CNMIF II was formed in 2007 and leverages various sources of public and private civic-focused capital as well as conventional debt, supporting targeted catalytic real estate and business development projects. In collaboration with the City of Cleveland and its stakeholders, investments are made strategically, building upon the competitive strengths of Cleveland.
CNMIF II will use its 2012 NMTC award to focus on creating jobs in low-income communities in Cleveland and Cuyahoga County. It will invest in real estate and business development projects for urban neighborhood redevelopment, downtown revitalization, and business facility expansion.
According to the Treasury Department, the CDFI Fund was established by the Riegle Community Development and Regulatory Improvement Act of 1994, as a bipartisan initiative. Since its inception, more than $1.11 billion has been awarded to CDFIs and other community development and financial organizations. The CDFI was created to promote economic revitalization and community development through investment in and assistance to CDFIs. These institutions are eligible for funding because they are a legal entity with the mission of promoting development in the communities they serve. Specifically, CDFIs expand the resources available to financial institutions, enabling them to provide more loans and services to qualified, yet historically underserved, populations and communities.