FirstPathway Community Development Awarded $45 Million in New Markets Tax Credits
Thursday, May 23, 2019 – The U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund awarded FirstPathway Community Development, LLC (FPCD) $45 million in New Markets Tax Credits (NMTCs). This is the third award FPCD has received, having received $25 million and $15 million in allocation awards from the CDFI Fund in 2016 and 2017 respectively. The controlling entity for FPCD is FirstPathway Partners, which is based in Wisconsin and operates EB-5 regional centers in Wisconsin and Illinois.
FPCD will use its NMTC allocation to fund operating businesses in Wisconsin and Illinois that seek to expand or retain jobs in blighted, low-income neighborhoods with areas of high unemployment. Known for its work with EB-5 investment, FirstPathway Partners has also raised capital for numerous projects with significant job creation.
In March FPCD was also awarded a $5.3 million Illinois New Markets Tax Credit allocation. FPCD will pair that award with this federal allocation on projects in Illinois.
“We are pleased that the CDFI Fund recognizes our capacity and success in using New Markets Tax Credit and has provided us the opportunity to continue to use our knowledge and talents in serving severely distressed communities,” said Robert Kraft, CEO and President of FirstPathway Partners.
Established by Congress in December 2000, New Markets Tax Credits permits individual and corporate tax payers to receive a credit against federal income taxes for making equity investments on qualified low-income community investments. The credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. For every dollar invested by the federal government, the NMTC Program generates over $8 in private investment.
The program addresses one of the most significant obstacles to economic development that low-income communities face: a lack of access to private investment capital. The funding also helps preserve and create jobs while bringing community facilities and new businesses into neighborhoods that desperately need them.
The 73 organizations receiving $3.5 billion in awards under the 2018 NMTC round were selected from a pool of 214 applicants that requested approximately $14.8 billion.
Since 2008, FirstPathway Partners has assisted hundreds of immigrant investors through the employment-based fifth preference (EB-5) immigrant visa category regional center program, raising millions in EB5 funds for job creating enterprises.