Vermont Business Magazine Mascoma Community Development (MCD) has been awarded $50 million in additional New Markets Tax Credit (NMTC) authority from the USTreasury's CDFI Fund. The NMTC program allows MCD to direct capital to underserved communities through financing high-impact, mission-focused projects nationwide. Mascoma Savings Bank has offices in Vermont.
Brooks House photo by Phil Innes.
This New Market Tax Credit award represents MCD’s second NMTC allocation, providing a total of $105 million since their first award in 2014. Mascoma Savings Bank, the parent of MCD, has now been a leverage lender on a total of 11 NMTC projects involving six different Community Development Entities (CDEs). These projects total over $144 million in Qualified Equity Investments prior to directly receiving NMTC allocation.
Mascoma Community Development is a CDE established by Mascoma Savings Bank to enhance, strengthen and revitalize low-income communities through the creation of quality jobs and community services and to stimulate economic opportunities for low-income residents throughout Maine, New Hampshire and Vermont, especially with investment in catalytic downtown redevelopment or business expansion projects. With its new NMTC allocation, MCD will be able to serve low income communities nationally; however its focus will remain those low income communities in Northern New England. Since beginning its work as a NMTC leverage lender, Mascoma Community Development has facilitated more than 1,400 permanent and temporary jobs being maintained and created throughout New England.
"MCD was established to help ensure that underserved communities throughout New England have access to flexible capital that can increase employment opportunities and community services where they are most needed. NMTCs have proven to be one of the most effective tools to make projects successful, to help achieve our mission, and to improve communities across our region. We are so pleased that the CDFI is supportive of our efforts”, said Dick Jennings, Managing Director, Mascoma Community Development.
The New Markets Tax Credit was enacted in 2000 in an effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities.
These are complicated deals, but they lower the cost of capital and help underserved areas see economic development. In Vermont, The Brooks House, which Mascoma invested in, and Commonwealth Dairy in Brattleboro have both benefitted from NMTC funding. Mascoma has also invested in projects in Barre, Burlington and Rutland.
Headquartered in Lebanon, NH, Mascoma Savings Bank is a $1.5 billion mutually owned bank established in 1899 with 27 branch locations in New Hampshire and Vermont, and two loan production offices in Vermont. The bank also offers investment services through Mascoma Wealth Management, and insurance products through its wholly owned subsidiary, Centurion Insurance Group. In 2013 the Bank founded Mascoma Community Development to help raise capital, facilitate loans, and support community development throughout Northern New England. The Bank is a member of the Federal Deposit Insurance Corporation (FDIC) and both the Bank and MCD are equal opportunity providers.
Source: HANOVER, NEW HAMPSHIRE, (November 18, 2016)-Mascoma