DES MOINES, IOWA - Iowa Community Development (ICD), a certified Community Development Entity with New Markets Tax Credit (NMTC) allocation and First National Bank of Ames have formed a strategic partnership to expand the NMTC program to support smaller projects in the $1.5-3 million range. ICD is currently seeking interested parties with projects that fit the NMTC criteria to be considered for this expanded offering.
The NMTC program monetizes the tax credit and helps attract private sector capital and development to communities and rural areas where new investment is needed most—low-income and distressed census tracts. The goal of a NMTC award is to fill a financing gap for transformative projects which bring new opportunities to qualifying areas. Because of its complex structure, NMTC projects typically have been limited to projects of
$5 million or more.
ICD has been committed to finding a way to expand the NMTC program to projects in the $1.5 to $3 million range for quite some time and is pleased that First National Bank of Ames has stepped forward to support the effort. To make this strategic partnership work, ICD has agreed to absorb some of the transaction costs that can be prohibitive of a smaller project, while First National Bank has agreed to purchase the NMTCs and serve as a lender for the unique structure of the program if needed. Together, ICD and First National Bank of Ames will bring the financial tool to smaller Iowa projects.
“We are thrilled that New Markets Tax Credits availability will be expanded in Iowa,” said Dan Robeson, president of Iowa Business Growth. “First National Bank of Ames has committed to working with us in order to allow the NMTC program to support smaller projects and ultimately create jobs and vitality in distressed areas of Iowa.”
To receive NMTC allocation, projects must be transformation in nature, create jobs, and be located in a low-income census tract. The qualifying census tract areas and program details are available at http://iowacommunitydevelopment.com/nmtc-program/. If you have an existing company expansion project that fits these criteria, please contact Dan Robeson at Iowa Community Development.
About Iowa Community Development
Iowa Community Development has assisted with allocating New Markets Tax Credit dollars to 24 different projects across the state since July 2007. These projects have significantly and uniquely benefited each of the communities they have impacted by creating thousands of jobs, reusing existing structures, and rejuvenating and adding new value to existing neighborhoods.
About First National Bank of Ames
First National Bank is a local, full-service bank, serving the Ames, Ankeny, Johnston, and West Des Moines communities from seven convenient locations. You can count on us for local decisions, the latest products and services, and an experienced, knowledgeable staff dedicated to serving our customers for over 110 years. We are personally invested in our communities.
Daniel T. Robeson, Iowa Community Development
515-421-4841 or firstname.lastname@example.org