A 2024 New Markets Tax Credit award to National New Markets Fund helped Bongards Creameries expand production in Perham, Minnesota. “As a result, more than 165 family farms have since hired over 300 new employees,’ said Bongards CFO Chris Freeman.
Photo courtesy of SDS Capital Group
Late 2025 saw the announcement of more than 140 New Markets Tax Credit (NMTC) awards worth some $10 billion by the U.S. Department of the Treasury in a “double round” of allocations covering 2024 and 2025. The intent of the program is community revitalization via the department’s CDFI Fund. The average award size is $70 million.
“The NMTC allocations announced today reflect a 20% increase in investments in rural and non-metro communities,” a Treasury release stated, noting the program was made permanent by the One Big Beautiful Bill Act and emphasizing reforms to steer the program away from what it characterized as “woke DEI and ESG priorities.” (For past Site Selection coverage of NMTC awards, including support for manufacturers from the organizations who receive the awards, read our 2024 analysis and 2023 analysis.)
The new round of investments goes to 142 recipients out of 216 total applicants. The awards will help expand rural hospitals, strengthen small businesses, build domestic manufacturing capacity and support job creation, Treasury said. “Looking forward, Treasury will pursue other reforms that focus the NMTC program on its core mission through measurable outcomes, not ideological experimentation. To the extent permitted by law, in the next NMTC cycle Treasury is looking to further advance:
- affordable housing development;
- small business growth and expansion;
- domestic manufacturing and reliable job-producing projects; and
- rural hospitals and essential community health infrastructure.”
For now, the Community Development Entities (CDEs) receiving the awards are looking forward to putting them into action. Though many are statewide or national in scope and impact, here’s how they break down by top states and cities:
Top States for Organizations Receiving New Markets Tax Credit Awards 2024-2025
| State | No. of Awards | Cumulative Amount |
|---|---|---|
| California | 11 | $780 million |
| Missouri | 10 | $670 million |
| New York | 9 | $660 million |
| Colorado | 6 | $475 million |
| Illinois | 6 | $450 million |
| Texas | 6 | $385 million |
Top Cities for Organizations Receiving New Markets Tax Credit Awards 2024-2025
| State | No. of Awards | Cumulative Amount |
|---|---|---|
| New York | 9 | $660 million |
| Denver | 5 | $420 million |
| Chicago | 5 | $375 million |
| St. Louis | 5 | $360 million |
| Washington, D.C. | 5 | $355 million |
| New Orleans | 5 | $310 million |
| Boston | 4 | $315 million |
| Kansas City, Missouri | 3 | $170 million |
One of four CDEs to receive the highest individual award amount of $95 million was National New Markets Fund (NNMF), an affiliate of Los Angeles-based impact investor SDS Capital Group. It’s the 15th NMTC award. Since 2006, NNMF says it has financed 51 projects providing $752 million of direct investment, creating and preserving more than 15,000 rural and urban jobs in distressed communities across the South and the Great Lakes region.
“Since 2010, NNMF refined its investment strategy to invest exclusively in U.S.-based manufacturing, food processing, and agricultural-focused businesses,” the organization said in a release celebrating the new award. “NNMF’s capital is used for plant expansions, equipment, machinery, and working capital, with a mission of enabling these firms to remain in the United States so they can continue generating high-quality jobs within economically distressed communities.”
A 2024 award to NNMF allowed for $15 million to go toward apparel manufacturer Komar Brands for its distribution center in Ellabell, Georgia, creating 296 new jobs.
Photo courtesy of SDS Capital Group
The release cited three examples:
“NNMF invested $17.5 million investment into Bongards Creameries, a farmer-owned co-op in rural Perham, Minnesota, consisting of 165 member farms. The capital purchased equipment for their milk processing plant, enabling the farmers to process milk into cheese and whey products, rather than just selling a low-priced commodity. Bongards’ milk intake capacity increased by almost 33% as a result. ‘NNMF financed us two years ago to expand our Perham production facility. As a result, more than 165 family farms have since hired over 300 new employees,’ said Bongards CFO Chris Freeman.
“In 2024, NNMF provided another $17.5 million allocation to Rich Products, a frozen foods manufacturer in Brownsville, Texas, for the expansion of its manufacturing facility, creating more than 132 new jobs in a community with 49% poverty. With the same award, NNMF provided $15 million to apparel manufacturer Komar Brands for its distribution center in Ellabell, Georgia, creating 296 new jobs in a community facing 14% unemployment, 1.7x the national average.”
In big-city Georgia, Invest Atlanta announced that its subsidiary Atlanta Emerging Markets, Inc. (AEMI) was awarded a $75 million NMTC allocation. “This influx of capital, in the form of NMTC allocation, will enable us to bring new investments, new businesses and new opportunities to neighborhoods that have long been overlooked,” said City of Atlanta Mayor Andre Dickens. “This award is about creating opportunities, access and building a future for all Atlantans.”
The allocation can be layered with other City of Atlanta economic development tools, including Tax Allocation District (TAD) funding, to accelerate development in under-invested areas, said an Invest Atlanta release. “Since 2022, AEMI has impacted more than 85,000 Atlanta residents through social impact investments, including 17,600 children supported by youth-focused organizations,” said Invest Atlanta President and CEO Dr. Eloisa Klementich.
To date, the NMTC program has generated $77 billion in qualified equity investment and $143 billion in total development financing to over 8,900 businesses across urban, suburban, and rural low-income communities, creating 1.2 million jobs nationwide.
You can use the CDFI’s searchable database to explore historic NMTC awards data about 1,667 separate NMTC awards going back to 2002. — Adam Bruns
