FARGO – Dakota Business Lending, a Fargo-based nonprofit that focuses on financing small businesses in North Dakota, Montana and Minnesota, has been selected to receive $ 30 million as part of a new business tax credit allowance by the United States Department of the Treasury.
Created in 2000 by the Community Renewal Tax Relief Act, the tax credit this year allocated $ 5 billion to community development entities across the country. The objective of the program is “to encourage and revive investments in low-income census sectors to create jobs, bring new opportunities in eligible areas and close a funding gap for transformation projects”, said said a press release from Dakota Business Lending.
Dakota Business Lending plans to “close a funding gap through a process of investing and monetizing tax credits,” the statement continued.
Among the program’s potential partners is the Greater Fargo-Moorhead Economic Development Corporation, which plans to use the funds to fund potential expansion projects across North Dakota.
“Although the New Markets Tax program has been in existence nationwide for several years, the Fargo-Moorhead region has had somewhat limited access to this powerful financial tool to support the development of primary sector businesses,” said Joe Raso, CEO of GFMEDC. “We are excited to partner with them to leverage our market knowledge of potential expansion projects to demonstrate the type of demand needed to justify an NMTC allocation. “
For more information about the program, visit dakotabusinesslending.com/nmtc or contact one of the company’s loan officers.