Lending to Better the Community
New Markets Tax Credits
Pictured here is the 39 Rainbow Project.
Central Bank has been awarded six allocations of New Markets Tax Credits (NMTC) from the Community Development Finance Institution (CDFI) Fund. NMTCs stimulate economic growth and create jobs by attracting private-sector capital investments into highly distressed areas. There are two important principles behind NMTCs. First, there are good business opportunities in distressed communities and these communities constitute a new market opportunity for the private sector. Secondly, a modest federal subsidy can provide the "nudge" needed to persuade the private sector to invest in these markets.