Central Bank of Kansas City announced its successful application and allocation of $30 million in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund.
The award, announced by the CDFI Fund on the first of September, marks the 10th successful NMTC award for the bank’s subsidiary, CBKC CDC, LLC (CBKC), with a total of $486 million in allocation since its first award in 2007. The NMTC program allows CBKC to direct capital to underserved communities through financing high-impact, mission-focused projects.
“We are proud that the CDFI Fund continues to value the work we’re committed to achieving for low-income communities in Missouri, Kansas and Illinois,” said Steve Giles, President and CEO of CBKC. “NMTC has proven to be one of the most effective tools to make critical community development projects successful, to help achieve our mission, and to improve communities and the lives of residents in the areas we serve.”
CBKC has been in business since 1951, celebrating 70 years in 2021. The bank has been certified as a CDFI since 1998 by the US Treasury Department, and was the first Kansas City-based Community Development Entity (CDE) to receive an allocation of NMTC. It has utilized the allocations to finance projects creating and retaining over 13,000 full-time jobs while supporting community services including healthcare, childcare, education and access to fresh, healthy food throughout low-income communities in its service area.
The New Markets Tax Credit program was enacted in 2000 in an effort to stimulate private 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 is a 39% federal tax credit, taken over seven years, on investments made in economically distressed communities.
Since the inception of the NMTC program, CBKC has closed financing for over 60 projects with total project costs exceeding $1.4 billion. CBKC, through its affiliate subsidiary CDEs, has deployed over $400 million of NMTC allocation into Illinois, Missouri and Kansas-based communities.
CBKC is one of 100 allocatees for the 2020 round of NMTC allocation, and the only allocatee based in Kansas City. This is the 10th successful NMTC award for CBKC.
Central Bank of Kansas City is located at 2301 Independence Avenue, and found at centralbankkc.com.