Enterprise Financial CDE Receives $80 Million New Markets Tax Credit Award; Largest to Date

The Community Development Financial Institutions (CDFI) Fund of the U.S. Department of Treasury recently selected Enterprise Financial CDE, LLC (EFCDE), the subsidiary of Enterprise Financial Services Corp (NASDAQ: EFSC), to receive $80 million of New Markets Tax Credits (NMTC). This marks the largest single allocation to date for EFCDE.

The NMTC Program advances economic development in financially underserved communities by making tax credit allocations available to Community Development Entities (CDEs) for targeted investments in eligible areas. In late December, the CDFI Fund awarded $10 billion total in allocation authority for the calendar year 2024-2025 round of the NMTC Program.

“NMTCs are a vital tool for EFCDE’s role in bridging financing gaps in the urban and rural communities we serve by further advancing resources for small business growth and expansion, domestic manufacturing and reliable job-producing projects, essential community health infrastructures and more,” EFCDE Executive Director Abby Kepple said. “We’re proud of this $80 million allocation authority and will continue deploying capital into more of these impactful projects, which have stimulated job creation and improved the quality of life for underserved residents in our communities and beyond.”

EFCDE has been awarded a total of $433 million in NMTC allocation, with this being the third consecutive and eighth total award received. To date, those tax credits have subsidized 70 deserving borrowers with high-impact projects that have created and retained more than 12,300 quality jobs and brought essential community services to more than 140,000 underserved residents during a decade of economic change.

Established by Congress in December 2000, the NMTC program helps economically distressed communities attract private investment capital by providing investors with a federal tax credit. Investments made through the NMTC program reverse the disinvestment of underserved low-income communities, with powerful results. According to the CDFI Fund, the NMTC program spurs $8 of private investment for every $1 invested.

More information about EFCDE and the NMTC program can be found here. Enterprise’s annual Community Impact Report, highlighting work in local communities, can be read here.