National New Markets Fund
The mission of National New Markets Fund (NNMF) is to invest in transformative projects that benefit both the borrower's low-income employees and the local community through positive economic, social, and environmental impacts. Since 2005, NNMF has received and deployed nine allocations of New Markets Tax Credits (NMTC) totaling $477 million from the U.S. Department of Treasury.
SDS is the manager of NNMF, in a joint venture with Economic Innovation International, Inc. SDS manages the daily operations of the Fund: originations, feasibility, due diligence, underwriting, site visits, structuring, 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.
For many years NNMF invested in a wide range of impact investments: hospitals, homeless campuses, office space for non-profits, charter schools and other community-based facilities. Most of these earlier investments were real estate investments. Since 2013, NNMF has focused its investments on manufacturing companies that demonstrate strong potential for improving low-income communities through the creation and retention of quality jobs.
NNMF reviews investment opportunities on an ongoing basis. Current core investment criteria include:
Manufacturers in the greater South and Great Lakes region
- Companies located in areas facing endemic poverty, low income levels and high unemployment rates
- New or expanding firms with strong support from the public and private sectors, community leaders, and residents
- Projects that help to catalyze economic revitalization in the surrounding community