Mascoma Community Development Wins Fifth New Markets Tax Credit Allocation for $55 Million

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Vermont Business Magazine Mascoma Community Development (MCD) is proud to announce a $55 million award in New Business Tax Credit (NMTC) authorization from the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund. The NMTC program enables MCD to direct capital to underserved communities by funding high-impact, mission-driven projects nationwide, primarily focusing on New Hampshire, Vermont, Maine, New York and Massachusetts. Mascoma Bank has branches in Vermont.

This New Markets Tax Credit represents MCD’s fifth allocation, providing a total of $285 million since their first award in 2014. MCD is a Community Development Entity (CDE) created by Mascoma Bank to deplo tax in projects that benefit people in great difficulty, low-income people and/or communities, and which promote the maintenance and creation of jobs, the revitalization of the downtown area, the development and the business expansion and further catalytic development.

“We are delighted that the CDFI Fund continues to support our community development efforts, which are bringing beneficial change and economic growth to the communities we serve,” said Dick Jennings, Managing Director, Mascoma Community Development. the areas where we primarily focus our funding have a significant need for access to flexible capital and would otherwise not be completed without this grant.”

The New Markets Tax Credit was enacted in 2000 to stimulate private investment and economic growth in low-income rural communities and minor urban neighborhoods that lack access to the flexible capital needed to sustain and develop businesses, create jobs and support healthy local economies. The NMTC is a 39% federal tax credit, spread over seven years, on investments made in economically distressed communities.

“We are very grateful for the continued support of the NMTC program from our congressional delegations in Washington, D.C. Their support of our community development efforts and the highly impactful NMTC program enables MCD to make meaningful and lasting change in communities across across the country,” said Clay Adams, president and CEO of Mascoma Bank.

When MCD receives compensation through its NMTC activities, a portion is also reinvested as a grant to support a CDFI partner that is local to the underlying project. Since 2021, MCD has funded $558,750 in CDFI Partner Grants to address community needs such as child care, community health, affordable housing, and small business support.

Based in Lebanon, New Hampshire, Mascoma Bank is a $2.66 billion community bank and Certified B Corporation established in 1899 with 28 branches in the Northeast. More recently, the Bank was named B Corp “Best for the World” for governance. In 2013, the Bank founded Mascoma Community Development to help 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 the Bank and MCD are equal opportunity providers.

LEBANON, NEW HAMPSHIRE (October 28, 2022) – Mascoma Community Development

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