Vermont Business Magazine Mascoma Community Development (MCD) is proud to announce a $55 million New Markets Tax Credit (NMTC) authority grant from the US Treasury’s Community Development Financial Institution (CDFI) Fund. The NMTC program enables MCD to direct capital to underserved communities by funding large-scale, mission-oriented projects across the country, with a primary focus on New Hampshire, Vermont, Maine, New York and Massachusetts. Mascoma Bank has branches in Vermont.
This New Markets Tax Credit award represents MCD’s fifth allotment, totaling $285 million since their first award in 2014. MCD is a Community Development Entity (CDE) established by Mascoma Bank to use tax credits for projects that benefit serve critically deprived, low-income individuals and/or communities, and promote job retention and creation, inner-city revitalization, business development and expansion, and additional catalytic development.
“We are so pleased that the CDFI Fund has continued to support our community development efforts, which are driving positive change and economic growth in the communities we serve,” said Dick Jennings, general manager of Mascoma Community Development. “Projects in rural areas where we primarily focus our funding have a strong need for access to flexible capital and would not otherwise be completed without this grant.”
The New Markets Tax Credit was introduced in 2000 to stimulate private investment and economic growth in low-income rural communities and small urban neighborhoods that lack access to the flexible capital needed to support and grow businesses, create jobs and maintain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments in economically distressed communities.
“We are very grateful for the continued support of the NMTC program from our congressional delegations in Washington, DC. Their support for our community development efforts and the highly impactful NMTC program enables MCD to drive meaningful, lasting change in communities across the country,” said Clay Adams, President and CEO of Mascoma Bank.
When MCD receives compensation through its NMTC business, a portion is also reinvested as a grant to support a CDFI partner local to the underlying project. Since 2021, MCD has funded $558,750 in CDFI partner grants to meet community needs such as childcare, community health, affordable housing, and small business support.
Mascoma Bank, headquartered in Lebanon, New Hampshire, is a $2.66 billion mutually owned and Certified B Corporation community bank founded in 1899 with 28 branches in the Northeast. Most recently, the Bank was designated a “Best for the World” B Corp for Governance. In 2013, the bank established Mascoma Community Development to raise capital, facilitate loans and support community development in Northern New England and beyond. The Bank is a member of the Federal Deposit Insurance Corporation (FDIC) and both the Bank and MCD are equal opportunity providers.
LEBANON, NEW HAMPSHIRE (October 28, 2022) – Mascoma Community Development