The South Carolina Community Loan Fund is receiving $20 million in New Markets Tax Credits to encourage economic growth in low-income and rural communities throughout the state.
The New Markets Tax Credits are distributed by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. The credits are used to cover gaps in project funding.
The SCCLF is one of 73 organizations nationwide to receive the tax credits, according to a news release. The $20 million will be used to finance community development projects intended to create jobs in underserved communities in South Carolina.
The SCCLF is currently evaluating which projects qualify for the tax credits and will work with community organizations, developers and local municipalities to assist with the projects in communities needing investment.
“We’ve got several projects in our pipeline that we’re looking at that are through municipalities,” Brendan Buttimer, SCCLF community development loan officer, said. “But they’re focused on job creation, job retention, oftentimes job training. They can be built around manufacturing, but the ones we’re looking at in particular are focused around community facilities and healthy food access.”
Buttimer said projects have to be ready to use the funds immediately or they can’t be applied.
“When you get your allocation, these are really time-sensitive. You have to deploy this money very quickly,” he said. “You are expected to have your other money in place and in the bank at the time of closing to get the new markets credits. So you really have to be ready to go.”
The SCCLF is a nonprofit CDFI headquartered in Charleston and focused on advancing equitable access to capital. Since it was founded in 2004, the SCCLF has provided 337 loans totaling more than $52.8 million on various community development projects throughout South Carolina.
“This New Markets Tax Credit allocation is significant for our organization and the communities we serve,” SCCLF Anna Lewin CEO said in the release. “The tax credits will allow us to finance larger deals and deepen our impact across the state.”