Prestamos CDFI Receives $90 Million New Markets Tax Credit Award for 8th Award

PHOENIX – Prestamos CDFI, LLC, a division of Chicanos Por La Causa, has been awarded $90 million in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund.Prestamos is a Community Development Entity that provides capital to businesses and community facility projects in highly distressed, low-income communities in Arizona, New Mexico, Nevada, Texas, California and Puerto Rico. Prestamos has received seven previous awards totaling $300 million.

Founded in 2000 by community development corporation Chicanos Por La Causa, Prestamos supports low-income businesses and communities by providing resources and services, dedicating 100 percent of its investment activities to disadvantaged populations.

“We are grateful for the CDFI Fund’s recognition of our work through this NMTC award,” said Jose Martinez, President of Prestamos CDFI. “Our mission is rooted in promoting economic prosperity and essential services in low-income communities across AZ, CA, NM, NV, PR, and TX. This award enables us to continue investing in projects that create quality jobs through domestic manufacturing and reliable job-producing small businesses, while also expanding access to essential community health and education infrastructure.”

 

The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making investments on qualified projects within economically distressed communities. Created by Congress in 2001, the credit totals 39 percent of the original investment amount and is claimed over a period of seven years. This award is part of a $10 billion NMTC allocation authority package announced this week by the CDFI Fund. Federal data show that for every dollar of allocation provided under the NMTC program, an additional $8 of private investment is leveraged for the economic development of these communities.