U.S. Treasury announces historic economic development investment in Native communities
Travois among Native-focused entities to deploy $150 million in New Markets Tax Credits
September 25, 2023
Kansas City, Missouri (Sept. 22, 2023) — The U.S. Department of the Treasury’s Community Development Financial Institutions Fund has announced $5 billion in New Markets Tax Credit allocations — including a historic investment to spur economic growth in Native communities across the country.
Travois New Markets, a nationally certified Community Development Entity (CDE) based in Kansas City, Missouri, is among several entities that will deploy a combined $150 million in investment toward American Indian, Alaska Native and Native Hawaiian communities.
“These NMTC allocations will result in a massive investment to create jobs, deliver health care and provide education in Native communities,” Phil Glynn, president of Travois, said. “Indigenous leaders across the country know where they want to go. This injection of capital will provide the boost to help them get there faster.”
New Markets Tax Credits (NMTC) play a critical role in attracting investment to economically distressed areas by providing financing with favorable terms and flexible features. The CDFI Fund awards the allocations to qualified CDEs. CDEs are private companies that finance economic development projects in low-income communities.
On Friday, Travois New Markets was awarded a $50 million allocation, while Chickasaw Nation Community Development Endeavor LLC based in Ada, Oklahoma, and Native American Bank in Denver also each received $50 million allocations. The allocations mark the first time three CDEs exclusively dedicated to Native communities have been awarded in the same year.
“Travois is grateful to the Inter-Tribal organizations that have been advocating for increased allocations to Native communities in recent years. We are grateful to the members of Congress who support this program and want to see more investment go to Native communities,” Glynn said. “We also want to thank the CDFI Fund for the enormous amount of hard work and dedication that goes into operating this vital program. Today’s announcement is clear evidence of the CDFI Fund’s commitment to Native communities.”
Travois New Markets is part of the Travois family of companies collectively focused on advancing affordable housing and economic development in Native communities. Travois New Markets last received a NMTC allocation in 2016, which was used to help clients create jobs, upgrade facilities and build community amenities.
“Our clients have shown that when capital is available for projects, they can use it to catalyze positive change,” Glynn said. “The Red Lake Nation has used NMTCs to build a grocery store that provides quality jobs and healthy food. The Choctaw Nation has used NMTCs to build a health and wellness center — showing that investing in people pays dividends for the entire community. This new $50 million allocation allows us to move forward with more great projects just like these.”
About the New Markets Tax Credit
The NMTC was authorized in the Community Renewal Tax Relief Act of 2000 (PL 106-554) as part of a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs and sustain healthy local economies. The NMTC program attracts capital to low-income communities by providing private investors with a federal tax credit for investments made in businesses or economic development projects located in some of the most distressed communities in the nation. For more information, visit nmtccoalition.org.
Travois is a Certified B Corporation focused exclusively on promoting housing and economic development for American Indian, Alaska Native and Native Hawaiian communities. Since 1995, Travois has brought investor equity to more than 250 developments in 23 states through the Low Income Housing Tax Credit (LIHTC) program and the New Markets Tax Credit (NMTC) program, making an impact of more than $1.8 billion across Indian Country. These private investor funds have helped build or rehabilitate over 6,100 homes and have helped finance critical economic developments, including infrastructure, health care, community centers, education facilities and job incubators. The Travois family of companies also offers architectural design, construction monitoring services, consulting on green energy improvements, asset management and compliance services and comprehensive training to clients. For more information, please visit travois.com. Find us on Facebook, X, LinkedIn and Instagram.