$65 Million To Stimulate Growth And Job Creation

ISSOULA, Mont. – As Wyoming residents look ahead to the state’s economic recovery from the COVID-19 pandemic, a federal program stands ready to help with development and job creation in cities and towns across the state. The New Markets Tax Credits (NMTC) Program has already demonstrated a high level of success aiding in economic recovery across the Northern Rockies. The nonprofit community lender MoFi first used the NTMC Program in the region just over a decade ago, and in that time it has helped dozens of projects worth hundreds of millions of dollars, creating or retaining thousands of jobs. This month, the U.S. Treasury awarded MoFi $65 million in New Markets Tax Credits to lend to businesses and projects in Wyoming, Idaho and Montana.

The NMTC Program was authorized under the Community Renewal and Tax Relief Act of 2000 to help stimulate private investment and economic growth in low-income and rural areas. Communities and local businesses that can benefit from the program typically are unable to access capital for projects that help create jobs and growth in these areas.

NMTC funding is awarded once a year through a highly competitive process by the Treasury. Since 2008, MoFi has received NMTC awards totaling $631 million, and has financed more than 45 projects across the Northern Rockies that created and retained nearly 4,400 jobs. Prior awards have helped build or expand manufacturing facilities, community food banks, medical centers, grocery stores, homeless shelters, mixed-use buildings and more. None of these projects would have been possible without the New Markets Tax Credit program.

While the NMTC Program has bipartisan support in Congress, it is not permanent. It has, however, been extended several times because of its positive impact on businesses and communities. Most recently, it received a one-year extension at the end of 2019, along with a sizeable increase in tax credit authority, from $3.5 billion to $5 billion annually. Work is underway to extend the NMTC Program again at the end of 2020, and legislation to make it permanent is gathering support in both houses of Congress and from both sides of the aisle.

Because of the recent economic downturn related to COVID-19 and the NMTC Program’s robust job creation record, discussions are taking place to consider how the program can again help with recovery.

“It’s challenging to attract economic investment to low-income communities in Wyoming in good times, but especially so during a pandemic. The NMTC has proven to be a vital resource in Wyoming, with MoFi helping projects totaling more than $37 million in the state since 2018. Having the NMTC permanently extended would provide a predictable source of capital to help fuel the state’s economic recovery through COVID-19 and beyond,” said Dave Glaser, MoFi’s President.

MoFi works with community leaders and local businesses to identify projects that will have the greatest impact and best benefit from the program. MoFi sells the tax credits to investors, turning them into cash, and then puts that cash into projects as a subsidy.

MoFi’s first NMTC project in Wyoming was the Cobblestone Hotel & Suites in Torrington, completed in 2018. Since then, MoFi has brought the tax credits to several additional projects in the state, including a new childcare facility and health clinic expansion in Riverton, and an expansion of Ivinson Memorial Hospital in Laramie.

MoFi is actively reviewing projects for the $65 million allocation, which will be deployed in qualified areas of Wyoming, Montana and Idaho. Communities, businesses and nonprofits that have projects of at least $5 million in value with a gap in financing are encouraged to contact MoFi at 844-728-9234 or mofi.org to see if they qualify.

About MoFi

MoFi is a nonprofit community development lender that provides loans to individuals, businesses and communities. MoFi believes that everyone should have equal access to the capital needed to create individual stability, business success and community prosperity. MoFi was one of the first Community Development Financial Institutions in the country to be certified by the U.S. Treasury, and its powerful New Markets Tax Credit Program has brought hundreds of millions of dollars to the region and created thousands of jobs. MoFi operates across the Northern Rockies with offices in Missoula, Bozeman and Boise. Learn more at mofi.org.