FirstPathway Community Development Awarded $50 million in New Markets Tax Credits
MILWAUKEE, Sept. 27, 2023
MILWAUKEE, Sept. 27, 2023 /PRNewswire/ -- The U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund announced today that it awarded FirstPathway Community Development (FPCD) $50 million in New Markets Tax Credits (NMTCs). This is the seventh NMTC award that FPCD has received, having received six previous awards with current total awards now at $280 million over the last seven years. The controlling entity for FPCD is FirstPathway Partners, which operates EB-5 regional centers in various states throughout the U.S.
FPCD is committed to improving employment conditions and reducing income inequality in areas of high unemployment in Illinois, Wisconsin, Indiana, and Michigan. FPCD will use its NMTC allocation to fund manufacturing and industrial businesses, which create or retain jobs in neighborhoods with areas of high unemployment.
"We deeply appreciate the CDFI Fund's continued support and recognition of our work in creating well-paying jobs for people with no more than a high school diploma in communities struggling with generational poverty and high unemployment. The jobs our borrowers create offer real solutions to these issues. As our nation grapples with the long road to recovery, supporting accessible job growth will be particularly important work," said Robert Kraft, Chairman and CEO of FirstPathway Partners.
New Markets Tax Credits permit taxpayers to receive a credit against federal income taxes for making equity investments on qualified low-income community investments. The credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. For every dollar invested by the federal government, the NMTC Program generates over $8 in private investment.
The program addresses one of the most significant obstacles to economic development that low-income communities face: a lack of access to private investment capital. The funding also helps preserve and create jobs while bringing community facilities and new businesses into neighborhoods that desperately need them. The 102 organizations receiving $5 billion in awards under the 2022 NMTC round were selected from a pool of 197 applicants that requested $14.8 billion.
Since 2008, FirstPathway Partners has assisted hundreds of immigrant investors through the employment-based fifth preference (EB-5) immigrant visa category regional center program, participating in nearly $1 billion in development using EB5 funds for job creating enterprises. FirstPathway Community Development is an equal opportunity provider.
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SOURCE FirstPathway Community Development