Dakota Business Lending (DBL) has been selected by the U.S. Treasury Department’s Community Development Financial Institution (CDFI) Fund to receive a $50 million New Markets Tax Credit (NMTC) award. This is their third NMTC allocation, following two $30M awards received in 2021 and 2022. They remain the first and only North Dakota-based financing entity to be chosen and one of the country’s top 100 community-focused organizations recognized this year.
NMTC is run and administered through the U.S. Department of Treasury. This year, the program allocated a total of $5 billion to 104 of the 196 Community Development Entity (CDEs) applicants across the nation through a competitive and challenging application process, who then use their NMTC awards to further the mission of the program: to encourage and jumpstart investments in low-income census tracts to create jobs, bring new opportunities to qualifying areas, and fill a financing gap for transformative projects. DBL’s NMTC priorities remain the same in assisting small businesses in low-income or distressed areas and creating employment opportunities in those areas through jobs that are both quality and accessible.
To date, DBL has allocated $60M total NMTC awards to seven qualifying small businesses located in low-income/distressed areas in Bismarck and Fargo. These allocations have had a $148.2M+ direct project impact and helped create and retain 556 permanent jobs for citizens across the state. “We are honored and excited to receive a third NMTC award and will continue to be good stewards of the program by using it to further solidify our commitment to helping small businesses in areas across ND that need it most,” commented Steve Dusek, President & CEO. “Our goal is to continue growing as the leading NMTC provider in the region, ensuring that this impactful program reaches its fullest potential for the businesses and communities we serve. It’s a great opportunity for DBL and an even better opportunity for small businesses in the state.”
DBL continues to maximize and spread economic impact by encouraging the “pay-it-forward” concept, asking businesses assisted through the program to “repay” the kindness by financially supporting local organizations in need. The seven businesses that have utilized DBL’s NMTC program have donated more than $350,000 to 14 local non-profits so far.
DBL uses the NMTC program as a unique financing mechanism that provides gap financing with interest only payments for seven years and then converts to equity in the business – principal payment is not required. Projects must be in a NMTC eligible area, large scale and transformative projects (greater than $7 million), and provide quality/accessible jobs or services to low income and distressed populations.
DBL has several projects in the pipeline for consideration and is also working on the application for the next round of funding. Please contact one of the DBL loan officers with any potential projects and visit www.dakotabusinesslending.com/nmtc for more information. The organization looks forward to providing this opportunity and continuing to impact this great state.
