AltCap Awarded $40 Million New Markets Tax Credit Allocation to Catalyze Investments in Economically Distressed Communities
AltCap, an impact-driven Community Development Financial Institution, is pleased to announce it received a $40 million New Markets Tax Credit allocation from the U.S. Department of the Treasury’s CDFI Fund.
This allocation strengthens AltCap’s ability to support catalytic real estate development projects and business investments that create jobs, expand services, and promote economic growth in underserved communities across Kansas, Missouri, Nebraska, California, and Texas.
“New Markets Tax Credits are a powerful tool for closing the capital gap on high-impact investments in the communities we serve,” said AltCap CEO Ruben Alonso III. “This allocation allows us to provide flexible financing for projects and business investments that help to revitalize communities and help them thrive.”
The New Markets Tax Credit (NMTC) Program is a federal program that drives private capital into economically distressed areas by offering tax credits to investors whose investments help to finance development projects and businesses.
The CDFI Fund estimates that for every $1 in federal tax credit, the program generates about $8 in private investment, helping create jobs, expand essential services, and grow communities that have historically lacked access to capital.
AltCap will deploy this allocation to support job-creating business investments, non-profits, and multi-service community facilities that help serve as economic anchors in low-income communities.
Eligible investments may include affordable housing, manufacturing and industrial facilities, community health and childcare centers, and other commercial and mixed-use developments that strengthen local economies and expand services to nearby residents.
Since 2010, AltCap has facilitated more than $275 million in NMTC transactions and brings a proven track record across a range of industries and project types.
AltCap’s previous NMTC investments include the Emmanuel Family & Child Development Center, the architectural metal firm A. Zahner Company, rough plumbing manufacturer Sioux Chief, the Linwood Family YMCA, the mental health center Rediscover, and more.
Each project reflects AltCap’s mission of providing accessible capital to entrepreneurs and communities that create positive economic and community impact.
We look forward to deploying this new allocation to empower entrepreneurs and support job creating business investments as well as strengthen communities through catalytic projects.
As a member of the KC CDFI Coalition, AltCap joins several other Community Development Financial Institutions in Kansas City that received NMTC allocation. Other CDFIs in Kansas City receiving NMTC allocations include Central Bank, and IFF, which received $85 million each, as well as Justine Petersen, which received $30 million.
To learn more about AltCap’s NMTC services, click here. To reach out about a potential NMTC project, please contact us at nmtc@altcap.org.
Below is a photo gallery of some of AltCap’s previous New Markets Tax Credit projects. To see the full list of AltCap’s NMTC projects, please click here.
