National New Markets Fund
National New Markets Fund (NNMF) supports economic revitalization and community development by investing federal New Markets Tax Credits in low-income projects and companies nationwide. Its mission is to improve each project’s economic, social, and environmental impact. Since 2005, NNMF has received eight allocations of tax credits totaling $427 million from the U.S. Department of Treasury, in a highly competitive process.
SDS is the investment manager for NNMF, which is a joint venture with Economic Innovation International. SDS manages the daily operations of the Fund and all of its activities: originations, feasibility, due diligence, underwriting, site visits, structuring the transaction, negotiating the investment terms, closing the transaction, loan servicing, compliance, investor reporting, seven years of asset management and assisting the borrower should they confront financial challenges.
The Fund uses its NMTC allocation to incentivize financial institutions to provide credit, capital, and financial services to underserved populations and communities. Its investments provide real estate developers and companies with access to the capital necessary to complete projects that promote job creation and improve access to community services. While the Fund supports a wide range of projects, including hospitals, schools, film studios and other types of facilities, most of its investments are focused on developing quality affordable housing, commercial centers, and industrial real estate projects that help revitalize low-income communities. Our core focus is to ensure the project is viable and can use this capital in a financially sustainable manner and that the project achieves its intended impacts on the community – creating jobs or services for low-income residents.