FOR IMMEDIATE RELEASE
$184 Million in Federal Funding Awarded to 9 Michigan CDFIs
The U.S. Department of Treasury, Community Development Financial Institutions Fund released the 2024 New Markets Tax Credit and CDFI Program awards.
LANSING, MI, October 2024 – Nine Michigan Community Development Finance Institutions (CDFI) recently received federal funding to build capacity and advance their missions. On September 19, 2024, the U.S. Department of Treasury, Community Development Financial Institutions Fund (CDFI Fund) announced $5 billion in New Markets Tax Credit (NMTC) awards, and on September 26, 2024, the CDFI Fund awarded $408.2 million Financial Assistance (FA) awards.
Michigan Community Capital received a $65 million NMTC award, Cinnaire received a $60 million NMTC award and Capital Impact Partners received a $50 million NMTC award. The New Markets Tax Credit program helps mission-driven lenders attract private investment capital to disinvested communities by providing individual and corporate investors a federal tax credit in exchange for making investments in businesses or economic development projects. This incentive bolsters CDFIs’ ability to provide loans to projects delivering social impact in communities across the country. Since the inception of the program in 2003, more than $3.8 billion has been invested in Michigan projects, facilities and businesses by leveraging the tax credit.
“The New Markets Tax Credit is an essential tool that drives meaningful change in underserved communities, creating opportunities for people and places that have historically been left behind,” said Mark McDaniel, Cinnaire President and CEO. “By incentivizing private investment in projects that create jobs, expand access to vital services, and strengthen local economies, the NMTC program fuels growth where it’s needed most. Working alongside our Michigan CDFI Coalition partners, we’re able to amplify this impact, aligning resources and expertise to ensure that communities across the state benefit from inclusive, sustainable development.”
In addition to being certified CDFIs, Michigan Community Capital, Cinnaire and Capital Impact Partners are also certified Community Development Entities (CDE) eligible to apply for NMTCs. Each CDE strategically deploys tax credits based on mission and areas of focus. To learn more about their individual deployment strategies, visit their websites at https://michigancommunitycapital.org/products/new-market-tax-credits/, https://cinnaire.com/new-markets-tax-credit-program/, and https://www.capitalimpact.org/mission-driven-financing/new-markets-tax-credit-financing/.
Seven Michigan CDFIs received $11.9 million in Financial Assistance awards through the CDFI Program and the Native American CDFI Assistance (NACA) program. These programs provide monetary awards to invest in and build the capacity of CDFIs, empowering them to grow, achieve organizational sustainability, and contribute to the revitalization of low-income and distressed communities. CDFIs use FA awards to meet goals such as: expanding operations into a new investment area or areas; serving a new targeted population or populations; providing new products or services; or increasing volume of products or services.
“This is a tremendous honor and opportunity for Chi Ishobak,” said Sean Winters, Executive Director of Chi Ishobak, Inc. “This incredible gift from the CDFI Fund will have a profound impact within Indian Country for tribal entrepreneurs and tribal consumers. It provides critical resources within a grossly underserved community.”
Financial Assistance awards were issued to the following Michigan CDFIs:
- Chi Ishobak, Inc. – NACA Award – $2,000,000
- ELGA Credit Union – $625,000
- Grow – $510,000
- Invest Detroit – $800,000
- Northern Initiatives – $625,000
- PropsperUs Detroit – $550,000
- Capital Impact Partners – $800,000
In addition to the base FA award above, Capital Impact Partners also received a $1 million supplemental Disability Fund award and a supplemental $5 million Healthy Food Financing Initiative award.
“We are grateful for this NMTC allocation and the FA awards, which will help Capital Impact Partners’ work in disinvested communities in Detroit and several of our other geographic focus areas around the country,” said Mindy Christensen, senior vice president of community development lending for Capital Impact Partners, which is part of the Momentus Capital branded family of organizations. “The NMTC award will help us bring private investors and key partners together to increase access to critical social services, including health care, education, and healthy foods.”
CDFIs are mission-based lenders that provide flexible and affordable financing to small and micro-businesses, first-time home buyers, affordable housing developments, and projects that revitalize neighborhoods, commercial corridors, and community spaces. CDFIs expand access to capital and the resources needed to grow communities by offering financial services, technical assistance, and more. The Michigan CDFI Coalition, founded in early 2023, brings together CDFIs across the state, working closely to forge inclusive policies, bolster community investment, all while providing flexible and affordable capital to uplift underserved communities and support nontraditional borrowers. The Coalition advocates for vital programs, such as the MI CDFI Fund Program, to support the work of CDFIs in Michigan.
Learn more about the Michigan CDFI Coalition and its members at www.micdfi.org. To learn more about the New Markets Tax Credit Program and the CDFI Programs visit www.cdfifund.gov.
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About Michigan CDFI Coalition
The Michigan CDFI Coalition was founded in 2022 with a mission of bringing Michigan CDFIs together to collaborate on the development of inclusive policies, deliver vital programs, and bolster their efforts in community investment across the state of Michigan. Prospective Michigan CDFI partners, communities, and individuals can learn more about the Michigan CDFI Coalition by visiting www.micdfi.org.