Georgia Community Reinvestment Fund (GCRF)

a Community Development Entity (CDE) of the U.S. Treasury CDFI Fund

Georgia Community Reinvestment Fund (GCRF), a new non-profit affiliate of CSRA Business Lending, is a Community Development Entity (CDE) of the U.S. Treasury CDFI Fund. GCRF received its first NMTC allocation of $30 million dollars on January 4, 2023. Our goal is to target our NMTC allocation at Low Income Communities in Rural and Smaller Metro Areas of Georgia outside of Atlanta. GCRF has committed 40% of NMTC’s allocation to non-metropolitan areas of Georgia. This effort is being supported by some of the states top economic development organizations who are serving on our Statewide Advisory Board.

NMTC’s are one of the most transformational tools available to target funding in communities that need investment, high quality jobs, and critical community services the most which will be the focus of GCRF.

HOW DOES THE NMTC PROGRAM WORK?

Through the NMTC Program, the CDFI Fund allocates tax credit authority to Community Development Entities (CDEs) through a competitive application process. CDEs are financial intermediaries through which private capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. Using the capital from these equity investments, CDEs can make loans and investments to businesses operating in low-income communities on better rates and terms and more flexible features than the market. COMMUNITY Revitalization by Rewarding Private INVESTMENT In exchange for investing in CDEs, investors claim a tax credit worth 39% of their original CDE equity stake, which is claimed over a seven-year period.

HOW DO LOW-INCOME COMMUNITIES BENEFIT?

The NMTC’S Program has supported a wide range of businesses including manufacturing, food, retail, housing, health, technology, energy, education, and childcare. Communities benefit from the jobs associated with these investments, as well as greater access to community facilities and commercial goods and services. Since 2003, the NMTC’S Program has created or retained more than 830,000 jobs. It has also supported the construction of 56.7 million square feet of manufacturing space, 94.5 million square feet of office space, and 67.2 million square feet of retail space. In addition, as these communities develop, they become even more attractive to investors, catalyzing a ripple effect that spurs further investments and revitalization.

HOW DO BUSINESSES BENEFIT?

The NMTC’S Program helps businesses with access to financing that is flexible and affordable. Investment decisions are made at the community level, and typically 98% of NMTC investments into businesses involve more favorable terms and conditions than the market typically offers. Terms can include lower interest rates, flexible provisions such as subordinated debt, lower origination fees, higher loan-to-values, lower debt coverage ratios and longer maturities, often with a portion of the debt forgiven at the end if seven years.