(Kansas City, MO) Feburary 13, 2018 - The U.S. Department of the Treasury’s CDFI Fund announced this week that AltCap, a Kansas City-based Community Development Financial Institution (CDFI), has received a $55 million New Markets Tax Credit (NMTC) allocation award. The award, AltCap's fifth since 2008, will enable AltCap to continue to finance high-impact investments and projects in low- to moderate-income communities throughout Kansas City.
"We are thrilled to receive this allocation award and thank the CDFI Fund as well Missouri Senator Roy Blunt for being such a strong champion and advocate for the NMTC Program" said Ruben Alonso, President of AltCap. "This allocation will allow AltCap to not only support more high-impact investments in distressed communities throughout Kansas City, but also continue to grow as a uniquely positioned economic development stakeholder that empowers people and communities to thrive".
Since 2008, AltCap has received $158 million in NMTC allocations to finance job creating businesses, non-profit social service providers, and catalytic real estate development projects. These awards have allowed AltCap to finance a range of investments including manufacturing and distribution facilities, commercial real estate development projects, multiple historic redevelopment projects including a repurposed school building and church, as well as numerous community health and education facilities. Past awards have also been used to capitalize the first NMTC Small Business Loan Fund in Kansas City, enabling AltCap to provide loans between $500,000 and $2 million to three small businesses (two minority-owned), one real estate development project and one non-profit daycare center. AltCap will use this most recent allocation award to continue to stimulate and support private investment in Kansas City's most economically distressed communities.
As the only Kansas City-based, mission-driven, and minority-controlled CDFI Loan Fund, AltCap has focused its capital deployment in distressed communities and to small businesses overlooked and underserved by traditional financial institutions. From NMTC to its small business and micro loan funds, AltCap provides a critical source of debt financing to support job creating businesses and catalytic, community-driven real estate development projects. Our unique and creative financing products fill gaps in the capital markets while generating significant economic and community impacts throughout Kansas City.
ABOUT THE CDFI FUND
A program of the U.S. Department of the Treasury, the CDFI Fund was created for the purpose of promoting economic revitalization and community development by investing in and building the capacity of CDFIs, like AltCap, to serve low-income people and communities lacking adequate access to affordable financial products and services. The NMTC Program incentives community development and economic growth by attracting investment to low- to moderate-income communities through the work of CDFIs and Community Development Entities (CDEs). Established by Congress in 2000, the NMTC Program offers a tax credit totaling of 39% to equity investors over a seven-year period. The CDFIs or CDEs then use the raised capital to make further investments in low-income communities.
For more information on AltCap's NMTC allocation award, contact Ruben Alonso at firstname.lastname@example.org or (816) 216-1851, ext. 1.