WASHINGTON, D.C. — New federal resources have been awarded to the Ohio Community Development Finance Fund. U.S. Sen. Sherrod Brown (D-OH) today announced that the Ohio Community Development Finance Fund was awarded a $40 million New Markets Tax Credit through the U.S. Treasury Department. The New Market Tax Credit (NMTC) program help attract investment in underserved regions that would otherwise suffer from a lack of financing.
“Small businesses throughout the state are critical to maintaining and strengthening Ohio’s economy,” Brown said. “The Ohio Community Development Finance Fund 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 Ohio’s existing strengths and transform the region economically.”
The Ohio Community Development Finance Fund – a Community Development Financial Institution (CDFI) – was awarded resources to make equity investments to help finance local community development projects, cultivate economic growth, and create jobs. The Ohio Community Development Finance Fund is a statewide, nonprofit organization that provides community based organizations with low-interest, long-term financing options for economic development in low-income communities.
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.