MBS Urban Initiatives CDE awarded $60 million in New Markets Tax Credits
September 1, 2021 | McCormack Baron Salazar
McCormack Baron Salazar (“MBS”) is pleased to announce its MBS Urban Initiatives CDE LLC affiliate was awarded a $60 million allocation through the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund under the 2020 allocation round of New Markets Tax Credit (NMTC) awards.
This new allocation will be used as the final piece of financing for economic development projects in urban communities across the country. Since its first award in 2006, MBS Urban Initiatives CDE has provided this key gap financing for 55 projects across the United States. These projects include educational facilities, health care, grocery stores and retail, light industrial, mixed-use, and cultural spaces that have created and maintained more than 9,500 jobs, educated over 45,000 students a year, and provided services for over 300,000 low-income individuals.
“MBS Urban Initiatives was established to support transformative, impactful investments that drive economic development and growth in previously neglected communities,” said Cady Seabaugh, Senior Vice President and Director of New Markets Tax Credits. “The past 18 months has illuminated for many people the depth of inequality in our country and the NMTC program has proven to be one of the most effective financing tools to drive investment and impacts to disinvested neighborhoods. We are so pleased the CDFI has continued to support us in our efforts.”
The U.S. Treasury Department awarded $5 billion nationwide in New Markets Tax Credits, which can be used to fund business startups, real estate development, community facilities and other projects in low-income areas. MBS Urban Initiatives CDE's allocation of $60 million brings the firm's total allocation to $470 million. This is MBS’s 9th allocation of New Markets Tax Credits since its first award in 2006.