The Regional Economic Development Center (REDC) has been selected by the NH Community Development Finance Authority to offer business financing to new American business owners seeking to open or grow their business and achieve the American Dream in the Granite State. The REDC invites corporate partners to join in support of the REDC’s 2023 NH New Americans Loan Fund by purchasing tax credits.
Since its launch, the New Americans Loan Fund has closed more than 37 loans totaling more than $1.477 million, resulting in the creation and retention of dozens of jobs. Some of the clients REDC has helped in recent years have not been eligible for COVID-19 emergency loans and grants, making this program especially important for these business owners.
“Coming to America and opening your own business is very much a part of who we are as a nation,” said Laurel Adams, President of REDC. “Through this program and our corporate partners, the community is coming together to ensure that dream continues for the next generation of new Americans.”
The tax credit allocation REDC has received will allow the organization to recapitalize its New Americans Loan Fund and leverage other resources to provide financing for another round of loans to businesses. REDC is seeking corporate partners to commit to purchasing tax credits or make direct charitable contributions now. On June 14, 2022, the CDFA Board of Directors approved an award of $350,000 in tax credits which will net $280,000 for the loan fund.
A 2022 Tax Credit and Capacity Building awardees announcement was held at the Kimball Jenkins Estate in Concord on Thursday, June 23.
How It Works
CDFA grants state tax credit awards on a competitive basis to qualified organizations for specific projects or programs through the Community Development Investment Program (CDIP). CDFA looks for innovative projects that show a high degree of community support, that build partnerships, and leverage other funds.
Organizations that want to help support the NH New Americans Loan Fund can donate through the CDFA Tax Credit Program. Companies who donate get 75% of that contribution back in the form of a state business tax credit. For example, if a donor makes a $25,000 donation to CDFA on behalf of the NH New Americans Loan Fund, their company will receive a state tax credit in the amount of $18,750. The tax credit may be applied against the donating company's business profits tax, business enterprise tax, and/or the insurance premium tax. The contributing company may carry forward the credit for up to five years, as well as select which business tax and how much of their credit to apply towards their taxes in any given year.
Companies may also be eligible to claim this donation as a charitable contribution, bringing the net cost as low as $.07 on the dollar.
The NH New Americans Loan Fund is a worthy area of investment that has been recognized for its results. The REDC was awarded the 2019 International Economic Development Council’s Silver Award for Excellence in Economic Development for Economic Equity & Inclusion for the program.
“This is an effective, low-cost way to leverage a contribution to make a big impact in the New Hampshire business community,” said Adams. “When successful businesses help other, new businesses, we get a strong and diverse business community where everyone benefits.”
For companies interested in supporting the NH New Americans Loan Fund through the CDFA Tax Credit Program via a tax credit pledge, or by making a direct donation, please contact REDC President Laurel Adams at 603-772-2655 or Laurel@REDC.com. For more information on the tax credit program, please visit https://nhcdfa.org/investing-in-nh-communities/tax-credit-program/. For more information about the NH New Americans Loan Fund, please visit https://www.redc.com/newamericanloanfund.