Peters, Stabenow Announce $125 Million in Federal Funding to Spur Economic Growth, Increase Access to Capital
DETROIT, MI – U.S. Senators Gary Peters (MI) and Debbie Stabenow (MI) announced that the U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has awarded $125 million in total funding to Michigan to spur investment and economic growth in low-income urban and rural communities across the state. Cinnaire New Markets LLC will receive $60 million, while Michigan Community Capital will receive $65 million through the New Markets Tax Credit Program.
“The CDFI Fund and the New Markets Tax Credit are both proven successes. These investments will play a key role in helping our communities recover from this challenging time and provide a boost to our local economy,” said Senator Peters, a member of the Commerce, Science and Transportation Committee. “I’m pleased to see this federal funding awarded to community-based institutions that make the most of these critical resources to support hardworking Michiganders and increase access to opportunity across our state.”
“The COVID-19 crisis has taken an incredible toll on small businesses in our state and made us appreciate even more their importance to our communities and our economy,” said Senator Stabenow. “These tax credits will help Michigan small businesses stay open, create jobs and help our economy recover.”
“MCC is working hard every day to support community development and job creating projects in Michigan,” said Eric Hanna, President and CEO of Michigan Community Capital. “Receiving not only a third straight award but also the largest award offered within this round is validation that our strategy to support our growing economy is working. We appreciate the support of our amazing congressional delegation and the hard work of Senator Peters and many others in pushing hard for scarce federal resources to support underserved communities and people in Michigan.”
“The New Markets Tax Credit has proven to be one of the most successful models for a public-private partnership, driving capital to America’s most disinvested neighborhoods,” said Mark McDaniel, Cinnaire President and CEO. “With this year’s award, we are focusing on organizations that support education, including early childhood, school-age children and adults seeking vocation training opportunities. We also plan to support projects that create job opportunities for individuals without a college degree or other barriers to obtaining employment. We are grateful to Senators Peters and Stabenow, and other members of the Michigan Congressional delegation, for their steadfast support of the New Markets program and helping us access these important resources. We look forward to partnering with and providing NMTC allocation to projects that will help all people have access to the tools and opportunities they need to succeed.”
The New Markets Tax Credit Program awards have generated $8 of private investment for every $1 invested by the federal government. Through the end of fiscal year 2020, the program award recipients deployed almost $56 billion in investments in low-income communities and businesses; with impacts such as the creation or retention of nearly 871,000 jobs, and the construction or rehabilitation of nearly 231.5 million square feet of commercial real estate. In Michigan, the New Markets Tax Credit has helped create over 29,000 jobs, raised nearly $3 billion in total capital, and has helped finance over 123 new projects.
Senators Stabenow and Peters have been long-time supporters of this program and will continue to fight to make sure Michigan gets its fair share of New Market Tax Credits. More information about these awards can be found at: www.cdfifund.gov/nmtc
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