FARGO — Dakota Business Lending, a Fargo-based nonprofit which focuses on providing financing for small businesses in North Dakota, Montana and Minnesota, has been selected to receive $30 million in a New Markets Tax Credit allocation by the United States Department of the Treasury.
Created in 2000 by the Community Renewal Tax Relief Act, the tax credit allocated $5 billion to community development entities throughout the country this year. The goal of the program is to "encourage and jumpstart investment in low-income census tracts to create jobs, bring new opportunities to qualifying areas, and fill a financing gap for transformative projects," a news release from Dakota Business Lending stated.
Dakota Business Lending plans to "fill a financing gap through a process of investing and monetizing tax credits," the release continued.
Among the programs potential partners is the Greater Fargo-Moorhead Economic Development Corporation, which plans to use the funds to finance potential expansion projects across North Dakota.
“While the New Markets Tax Program has been around for a number of years nationally, the Fargo-Moorhead area has had somewhat limited access to this powerful financial tool to support primary-sector business development,” Joe Raso, CEO of GFMEDC, stated. “We are pleased to partner with them to leverage our market knowledge of potential expansion projects to demonstrate the type of demand needed to justify a NMTC allocation."
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For more information on the program, visit dakotabusinesslending.com/nmtc or contact one of the firm's loan officers.
