Program will expand successful economic development work in low-income areas
Vermont Business Magazine The US Treasury Department announced on Wednesday that Evernorth Rural Ventures, a subsidiary of Burlington-based Evernorth, was awarded a $60 million allocation of New Markets Tax Credits (NMTC) to continue its successful economic development work in low-income areas.
“This award will allow us to invest in expanding businesses which create or retain good jobs,” said Evernorth Co-President, Nancy Owens. “Our economic development work has been incredibly successful in ensuring our rural and underserved low income communities are not left behind. This investment will allow us to further that work throughout northern New England.”
Under the NMTC program, investors receive federal tax credits in exchange for making investments in eligible economic development projects. These business and real estate investments provide more favorable terms and conditions than the market typically offers.
Competition for the NMTC awards was stiff. The Community Development Financial Institutions (CDFI) Fund, the arm of Treasury that operates the program, awarded $5 billion in NMTC allocation, receiving applications from 208 organizations. Only 100 applicants (48 percent of the total applicant pool) were awarded allocations that ranged from $20 million to $65 million. Evernorth Rural Ventures was one of 16 rural designated Community Development Entities (CDEs) awarded.
NMTC financing through Evernorth Rural Ventures has created $199 million in affordable capital to support $367 million in total development activity across 18 northern New England communities, chiefly in rural areas. Twenty-four manufacturing, downtown real estate and essential service organizations and businesses have benefited from Evernorth Rural Ventures’ program, which has generated 560 new jobs while retaining another 1,620.
With its new award of NMTC allocation, Evernorth looks to invest in job-generating regional manufacturing and essential community goods and service providers to create living wage jobs, increase access to healthcare, address food insecurity, and revitalize low income communities.
“As we look to recover from the pandemic, this award will help restore and improve the quality of life in low income communities,” said Beth Boutin, Vice President of Community Investments at Evernorth. “New Markets Tax Credits can advance a range of essential community projects, each a key to providing good jobs and essential community goods and services.”
Prospective NMTC projects generally need to be located in qualified census tracts. In 2020, Evernorth Rural Ventures expanded its service area to include all of Maine, New Hampshire, and Vermont, as well as four counties in western Massachusetts and two counties in northeastern New York.
Those interested in learning more about Evernorth Rural Ventures' NMTC program should contact Beth Boutin, Vice President of Community Investments, at (802) 863-8424.
Evernorth is a nonprofit organization that provides affordable housing and community investments in Maine, New Hampshire, and Vermont. Evernorth has raised and deployed over $1 billion in equity capital for affordable housing and built more than 13,000 affordable homes for low- and moderate-income people across northern New England. www.evernorthus.org
Evernorth Rural Ventures, Evernorth’s New Markets Tax Credit program, has invested in businesses located in downtown and village centers, nonprofit providers offering critical services, and expanding manufacturing companies. In ERV’s 11 years of operation, its 24 NMTC investments have produced $199 million in affordable capital to support $367 million in total development costs in low-income communities across northern New England.
Source: Evernorth. Burlington, VT 9.2.2021