For Immediate Release
September 3, 2021
WASHINGTON — The U.S. Department of the Treasury’s Community Development Financial Institutions Fund yesterday announced $5 billion in New Market Tax Credit (NMTC) allocations to 100 community development entities (CDEs) in 34 states. The allocations include $30 million in NMTCs awarded to Alaska Growth Capital BIDCO Inc., a Native CDFI/CDE based in Anchorage. It is the first allocation secured by a Native CDFI/CDE since 2017.
The following statement can be attributed to Jackson Brossy, executive director of the Native CDFI Network:
“We are pleased to see that a Native CDFI/CDE has been included in the New Market Tax Credit allocations for the first time in four years. Alaska Growth Capital (AGC) is a worthy recipient that will leverage these federal tax credits to bring much-needed infrastructure and community development projects to rural and Native communities. AGC is a great leader in the Native CDFI community and we are proud of AGC’s Mary Miner who serves on the Native CDFI Network Policy Committee.”
“At the same time, it’s important to note that Native-led applicants have received just $30 million out of a total of $20 billion in NMTC allocations over the past four years — just 0.15 of one percent. The overall lack of NMTC allocation to Native-led applicants highlights the dire need for program improvements that will support Native American communities across Indian Country. This is recognized not only in the Native CDFI/CDE community, but in Congress as well. Last September, the House Ways and Means Committee sent a bipartisan letter to the CDFI Fund calling for the Fund to ‘examine’ its allocation application and review process and revise elements that might ‘limit investment in Indian Country.’ Subsequently in March of this year, NCN submitted comments on recommendations for program improvement. We reiterate our call for improvement again. The Treasury can take two important steps by:
- Establishing an NMTC Native American program — similar to its successful Native American CDFI Assistance (NACA) program — to help ensure Native-controlled CDEs receive a minimum allocation each year.
- Clarifying rules to state that a tribal government can own a qualified active low-income community business (QALICB).
“New Market Tax Credits are an extremely important tool for promoting community revitalization, which is the core of what Native CDFIs and CDEs do throughout Indian Country. We are calling on Secretary Yellen and the CDFI Fund to make those tools more readily available to Native CDFIs and CDEs.”
For more information or to speak to a Native CDFI executive about how changes to the NMTC program could benefit Indian Country, please contact NCN Interim Executive Director Pete Upton at (202) 680-9853 or via email at [email protected].