POSTED ON OCTOBER 30th, 2009
Milwaukee Economic Development Corporation receives $25 million to support business development
The Milwaukee Economic Development Corporation (MEDC), a non-profit lending agency associated with the City of Milwaukee, has received an allocation of $25 million in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund. MEDC is one of 99 certified Community Development Entities that received allocations.
“As a member of Congress, I fought to establish the New Markets Tax Credits as a tool to encourage investment in low-income communities that lack access to capital,” said Mayor Tom Barrett. “The allocations to MEDC ensure that this tool is put to work right here in Milwaukee central city neighborhoods to rebuild our economy and create opportunity and jobs.”
The NMTC provides investors (financial institutions, individuals, corporations, etc.) with a tax credit for investing in a Community Development Entity (CDE) that, in turn, reinvests the funds in qualified low-income communities.
Counting today’s allocation, MEDC has received $93 million in NMTC allocations since 2006. MEDC uses its credits to increase the number and improve the terms of low-interest loans made to central city businesses to support job growth. Since receiving its first NMTC allocation, MEDC has used NMTC to make loans at favorable terms to 33 small and medium sized Milwaukee companies. MEDC lends predominantly to minority- and women-owned firms.
About one-fifth of MEDC’s total NMTC allocation is made available for central city commercial and industrial real estate development projects. Projects within the 30th Street Industrial Corridor, including the redevelopment of the former Tower/A.O. Smith factory complex, are potential beneficiaries of NMTC investment.
This is the second good news MEDC has received within the past month from CDFI. On October 2, 2009, CDFI awarded MEDC $750,000 to capitalize a new revolving loan fund targeted to firms that offer employment opportunities to Milwaukee residents.