People Incorporated Awarded $20,000,000 To Fund High Impact Community Development Projects
U.S. Treasury award of New Market Tax Credits will enable non-profit to help finance high-impact projects in communities with high poverty and unemployment
February 24, 2012
ABINGDON, VA- People Incorporated Financial Services, a non-profit community development organization headquartered in Abingdon, VA, has been selected by the CDFI Fund of the U.S. Department of the Treasury to receive a $20 million allocation of New Markets Tax Credits (NMTC) to provide financing for high-impact, community development projects throughout Virginia and the southeastern United States. People Incorporated was selected from among 314 community development practitioners that competed for the NMTC in 2011. This is the third allocation of NMTC for People Incorporated in four years.
"With this new allocation of New Markets Tax Credits, People Incorporated will continue to drive economic activity, growth and job creation in highly distressed communities throughout Virginia and the region," said Rob Goldsmith, President and CEO of People Incorporated. "This award both demonstrates and validates the significant economic impact People Incorporated continues to make in Virginia and throughout the southeastern United States."
The New Market Tax Credit program was established by Congress in December 2000 to allow individual and corporate taxpayers to receive a federal income tax credit for making equity investments in organizations such as People Incorporated that agree to invest in low-income, high -poverty, high-unemployment communities.
CDFI Fund Director Donna J. Gambrell announced $3.6 billion in New Markets Tax Credits awards yesterday in New Orleans, LA, identifying 70 organizations nationwide to receive NMTC allocation awards under the 2011 program round. These 70 awards will leverage billions of dollars of investment into businesses and real estate projects to create jobs and promote growth in low-income communities with high rates of poverty and unemployment.
People Incorporated Financial Services will use its 2011 NMTC allocation to increase lending to operating businesses and real estate projects in underserved areas throughout Central Appalachia and the rural South. The NMTC allocation will enable People Incorporated to provide debt and equity financing to businesses at significantly reduced interest rates and with more flexible terms and conditions, such as longer than standard amortization periods, higher loan to-value ratios, lower than standard origination fees, and lower debt service coverage ratios than are typically available through conventional markets.