New Markets Tax Credits

Investing in economic development projects with lasting impact

Our New Markets Tax Credit (NMTC) program supports high-impact community development projects that benefit underserved areas. Fueled by allocations of tax credits from the US Department of the Treasury, the program facilitates private investments and lowers the cost of capital for community and economic development projects that create quality jobs and long-term opportunities for low-income people and communities. BlueHub Capital has received ten allocations totaling $608 million from this very competitive program.

Our investment strategy

City officials and community leaders break ground on the new Franklin Cummings Tech campus in Nubian Square. Photo courtesy of Franklin Cummings Tech.

We identify high-impact projects in low-wealth areas that, without the substantial below-market private investment from the NMTC, could not get off the ground or expand. Typically, these projects are community facilities, manufacturing plants or commercial developments that deliver high-quality, sustainable jobs or services for local residents. We then bring in national equity investors to finance these projects at very favorable rates, providing savings that make the projects economically sustainable.

BlueHub Capital takes a three-pronged approach to NMTC investments:

Invest in projects large enough to strengthen local industry and diversify the economic base, as well as provide high-quality, accessible jobs and needed community services and goods to low-wealth regions
Work with co-lenders and investors that have relevant regional experience
Structure our investments to generate sustainable social and financial returns

Where we work

We work nationally and have deployed NMTC allocations in 20 states. We partner on community and economic development projects in the nation’s most underserved rural and urban communities, including these examples:

Community facilities such as a healthcare center, social service organization and schools in Connecticut, Tennessee, North Carolina and Massachusetts
Food manufacturers in Tennessee and Georgia
Commercial real estate redevelopment projects in Texas, North Dakota, Virginia and Connecticut

Map of the US indicating the 22 states where BlueHub has made NMTC investments and target states identified by the CDFI Fund: TX, GA, FL, TN, VA, WV

Our NMTC impact

7,580+

Jobs created and retained

2.7M+

Acres of forestland sustainably managed

624,100+

Square feet of commercial real estate constructed or rehabbed

$608M

In NMTC allocations from the US Treasury Dept.

$1.6B

Additional capital leveraged for communities we serve

87%

Of our NMTC investments have been in rural/suburban areas

BlueHub Loan Fund also makes NMTC leverage loans to support community health centers, childcare facilities and charter schools. We double the impact of the NTMC allocation by using earnings to launch new initiatives and expand our core lending programs, including BlueHub Loan Fund, BlueHub SUN’s foreclosure relief lending and BlueHub Energy.

Examples of NMTC Investments

BlueHub Capital's $19.5 Million NMTC Investment in Benjamin Franklin Cummings Technical School

This investment is part of a $44.75 million NMTC allocation involving Chase Bank, Consortium America, GrowAmerica, and Partners for the Common Good.
The NMTC investment will provide a $12 million subsidy to keep education affordable at one of the oldest technical colleges in the country delivering transformative technical and trade education that leads to economic advancement.
The project will create 77 temporary construction jobs and 108 permanent full-time positions. Read more.

BlueHub Capital is investing $32.5 million in Kids’ Meals, a Houston nonprofit providing healthy meals to preschoolers in need. With a $6.3 million boost, Kids’ Meals will expand to serve 7 million meals annually and offer critical services. We're proud to help build a healthier future for our communities!

BlueHub Capital's $32.5 Million NMTC Investment in Kids' Meals, Houston Nonprofit

The NMTC investment will provide a $6.3 million subsidy to support the construction of the Building Hope Campus, a 50,000 square foot food distribution and social services center.
Kids’ Meals serves families trapped in generational poverty, as well as families formerly considered members of the middle class who have slipped into situational poverty and are new to the system of food pantries and welfare.
The project will retain 44 permanent full-time employees and increase meal distribution from 2.7 million to over 7 million annually, serving 14,550 families. Read more.

Contact us

Emily Kaminsky

Director of Impact and Compliance Finance

ekaminsky@bluehubcapital.org

617.427.8600

Emily is responsible for grants management, investor compliance, impact reporting and BlueHub Capital’s Impact Program and New Markets Tax Credit program.