Award designed to spur investment and economic growth in low-income urban and rural communities
CHICAGO, July 21, 2020 /CNW/ - BMO Harris Bank is pleased to announce today that BMO Harris New Markets Fund, LLC has been awarded $55 million in New Markets Tax Credit (NMTC) allocation from the U.S. Treasury's Community Development Financial Institution (CDFI) Fund.
BMO Harris New Markets Fund is a Community Development Entity (CDE) owned by BMO Harris Bank with the mission to provide flexible financing for community development to low income communities, primarily utilizing tax credit-enhanced products like the NMTC.
This is the sixth award for BMO Harris Bank for a total of $298 million in NMTCs since the bank's first NMTC award in 2006. BMO Harris Bank will use this award to direct potential future investments in eight states: Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
"This award supports BMO's commitment to community revitalization and stabilization in areas of concentrated poverty," said Pamela Daniels-Halisi, managing director of community development lending for BMO Harris Bank. "We will leverage the tax credits to finance projects that create long-term economic benefits – including increasing retail grocery in food deserts, improving access to quality, critical healthcare and quality education services and stemming retail leakage in severely distressed low income communities."
The New Markets Tax Credit 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 capital needed to support and grow businesses, create jobs and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities.
BMO's community development initiatives are part of their commitment to Boldly Grow the Good by fostering a sustainable future, thriving economies and an inclusive society. Click here to learn more about BMO's investments to strengthen communities.
About BMO Harris Bank
BMO Harris Bank provides a broad range of personal banking products and solutions through more than 500 branches and fee-free access to over 40,000 ATMs across the United States. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the United States. For more information about BMO Harris Bank, visit the company fact sheet. Accounts are subject to approval. BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a highly diversified financial services provider with total assets of CDN$987 billion as of April 30, 2020.
SOURCE BMO Harris Bank