Enterprise Financial CDE, LLC (EFCDE), the subsidiary of Enterprise Financial Services Corp (NASDAQ: EFSC), has been selected by the CDFI Fund of the U.S. Department of Treasury to receive a $60 million allocation of New Markets Tax Credits (NMTC). These tax credits provide critical financing for community development projects and qualified businesses located in low-income and underserved communities. This is the fifth NMTC allocation awarded and brings the total amount of allocation to EFCDE to $243 million to date.
The CDFI Fund, a division of the U.S. Department of Treasury, stimulates economic revitalization and community development in low-income communities through programs such as the highly competitive New Markets Tax Credit program, which for two decades has worked to attract private sector capital into the most economically distressed and underserved communities across the country. EFCDE was one of 100 organizations nationwide to receive an allocation from the 2020 competitive round.
“This award provides not only a testament to the real difference our investments have made in years past, but the promise of even greater impacts for underserved communities in years ahead,” said Abby Kepple, EFCDE Executive Director. “We look forward to working with our community partners to help drive growth in quality jobs and fund the essential facilities that improve the quality of lives of individuals throughout our service area.”
Established by Congress in 2000, the New Markets Tax Credit program helps economically distressed communities attract private investment capital by providing investors with a federal tax credit. Investments made through the New Markets Tax Credit 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.
“The tax credits provided through this allocation provide a valuable tool to extend our reach and capacity to serve disinvested communities,” said Jim Lally, President and CEO, Enterprise Financial Services Corp. “Now, more than ever, NMTCs do more than catalyze economic development—they bring hope to the most distressed communities and residents across our footprint.”
To learn more about EFCDE and its NMTC program, visit enterprisebank.com/business/new-markets-tax-credit. For more information about Enterprise’s work in our communities, read our annual Community Impact Report, available at enterprisebank.com/impact.
About Enterprise Financial CDE
EFCDE operates under a national service area with primary focus across the states of Arizona, California, Illinois, Kansas, Missouri, Nevada, New Mexico and contiguous states. As a community development entity, EFCDE invests in small businesses that stimulate job creation and economic development across highly distressed communities and community facilities that improve quality of life for underserved populations.
EFCDE benefits from the partnership of its subsidiary, Enterprise Bank & Trust, a growing financial services partner focused on guiding people to a lifetime of financial success. The controlling entity of both subsidiaries, Enterprise Financial Services Corp, representing approximately $12.7 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Additional information is available at www.enterprisebank.com.