Vermont Business Magazine Mascoma Community Development (MCD), based in Lebanon, NH, has announced an award of $85 million in New Markets Tax Credit (NMTC) authority from the U.S. Treasury's Community Development Financial Institution (CDFI) Fund. This NMTC award represents MCD’s eighth allocation, providing a total of $480 million to support projects since their first award in 2014, including projects in Vermont. The calendar year 2024-2025 round of the NMTC Program, which awarded $10 billion overall, is the largest allocation in the program’s history.
The NMTC program allows MCD to direct capital to stimulate economic growth and empower private sector investment in distressed communities. MCD focuses primarily on northern New England; 48% of its allocation has supported projects in New Hampshire, Vermont, and Maine. Thus far, MCD’s NMTC funds have created or maintained 6,911 full-time jobs. Eighty-five percent of its allocation (over $298M) has been utilized in non-metro, rural communities, financing primarily manufacturing, retail, and downtown, mixed-use real estate projects.
"We are honored to receive this award from the CDFI Fund, which will provide rural communities with access to flexible capital and support projects that catalyze positive change and economic growth,” said Ryan Bishop, Managing Director, Mascoma Community Development. “With over 200 applications submitted this round, we understand the importance of investing these funds effectively to maximize impact in these communities.”
MCD is a Community Development Entity (CDE) established by Mascoma Bank to deploy tax credits into projects that benefit communities that lack access to capital, and which promote job retention and creation, small business development, manufacturing, and additional catalytic development. Mascoma Bank has 14 offices in Vermont.
“We are proud that MCD has received its eighth NMTC award, and sixth consecutive award. Thank you to our Congressional delegations in Washington, D.C. for their continued support of the NMTC program so our team can help connect rural communities with needed funding that can provide quality job opportunities, critical infrastructure, and community facilities,” shared Clay Adams, President and CEO of Mascoma Bank.
When MCD receives a fee through its NMTC activities, a portion is also reinvested as a grant to a CDFI partner that is local to the underlying project to support further economic development and the greater needs of the community. Since 2021, MCD has funded $1,213,750 in CDFI partner grants to address community needs such as childcare, community health, affordable housing, education, and small business lending.
The New Markets Tax Credit was enacted in 2000 to advance economic development in economically distressed communities by making tax credit allocations available to Community Development Entities (CDEs) for targeted investments in eligible areas, and it was made a permanent part of the U.S. tax code through the One Big Beautiful Bill Act. It stimulates private investment and economic growth in low-income rural communities and minor-urban neighborhoods that lack access to the flexible capital needed to support and grow businesses, create jobs, and sustain healthy local economies. Over its history, it has made investments in 8,900+ businesses across urban, suburban, and rural low-income communities and created more than 1.2 million jobs nationwide.
Mascoma Bank is a $2.9 billion mutually owned community bank and Benefit Corporation with 26 branches as well as financial services offices in New Hampshire, Vermont, and Portland, Maine. Mascoma Community Development, Mascoma Wealth Management, and Mascoma Technologies are wholly owned subsidiaries of Mascoma Bank. The bank has a 126-year history of serving communities and businesses, primarily in rural and minor-urban areas. Member FDIC and Equal Housing Lender.
Examples of Vermont Projects
St. Johnsbury, Vermont
The construction of a 21,500 SF transformer board components production building, purchase and installation of new equipment, renovations, and a new 10,000 SF finished good storage facility. Mascoma Community Development provided $20,000,000 in NMTC allocation.
Brattleboro, Vermont
The redevelopment of a 20-year vacant facility to include 48,115 SF mixed use commercial and community space and 22 residential units. Mascoma Community Development provided $15,000,000 in NMTC allocation.
Burlington, Vermont
An acquisition and renovation of real estate providing long-term affordability to an important arts program for the City of Burlington, which seeks to nurture creativity and imagination through the arts. Financing was provided from a Mascoma Community Development NMTC loan pool fund.
Bennington, Vermont
A $31 million revitalization of the historic Putnam Block that will transform and bring to life three dormant, historic multi-use buildings in the heart of downtown Bennington. Mascoma Community Development provided $4,400,000 in NMTC allocation and Mascoma Bank provided the leverage debt.
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