Applications are now open to Upper Midwest organizations interested in applying for funding from the allotment of $65 million in federal New Markets Tax Credit (NMTC) awarded to Bremer Bank’s community development entity (CDE), Bremer CDE, LLC. The funding is allocated for investment in Bremer Bank communities located in Minnesota, Wisconsin and North Dakota. Eligible applicants include small businesses, nonprofit organizations, healthcare facilities and other entities that provide community support.
“With this award, Bremer will thoughtfully partner with both urban and rural organizations on critical projects that will make a lasting, positive impact on the communities that we have served for more than 80 years,” said Bremer President and CEO Jeanne Crain.
Out of 196 CDEs that applied for $14.7 billion in available tax credit from the U.S. Department of the Treasury, Bremer CDE is one of 104 that received awards. The total award given to Bremer CDE is larger than most. “We were among only 12 who received $65 million,” said Tracy Hubbard, Bremer’s community development finance director. “That validates the work we are proposing.”
“It’s about cultivating thriving communities,” said Hubbard. “The NMTC program is centered on supporting projects in severely distressed communities that lift up and serve low-income residents through measurable impacts.”
Bremer is currently screening projects to decide which ones it will fund. Hubbard said Bremer CDE’s allocation agreement requires 50% allocation in non-metro areas and 20% in federal Indian reservations and off-reservation trust lands in Minnesota, Wisconsin and North Dakota.
“Bremer CDE has proven the ability to deploy allocation to the hardest-to-reach communities and we have committed to continuing to serve them,” Hubbard said.
Bremer CDE has received two previous NMTC awards totaling $75 million. The funds enabled Bremer to complete 27 projects focusing on three areas: healthcare, healthy food and multipurpose community centers. Examples of completed projects in Minnesota’s medically underserved areas include People’s Center Cedar-Riverside Clinic in Minneapolis, White Earth Nation’s Naytahwaush Health Center and the newly opened Turtle Mountain Recovery Center in North Dakota. Healthy food projects include Viroqua Food Cooperative and a Festival Food location that alleviated USDA-designated food deserts in Wisconsin. The Boys & Girls Club of Detroit Lakes & Perham is a multi-purpose facility Bremer CDE funded as part of the past allocations. To date, Bremer CDE’s NMTC investments have increased access to fresh food for 17,884 people and community services for 32,825 people.
Historical track record in community development efforts is considered in the NMTC application process. Bremer CDE has engaged in partnerships to deploy its allocation to underserved people and communities. “We are not successful alone; these projects all require additional CDEs and industry partners. The upper Midwest is fortunate to have many like-minded CDEs that aim to deploy their allocation for the highest and best use within our under-resourced communities,” Hubbard added.
Organizations interested in applying for NMTC funding from Bremer CDE can learn more here.