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Chicanos Por La Causa Prestamos division notches $65M Department of Treasury award

photo of downtown phoenix where Chicanos Prestamos has secured $65m in grant funds
A view of an entryway into downtown Phoenix along Interstate 10 as a motorist would encounter 7th Avenue. (File Photos/DigitalFreePress)
Chicanos Por La Causa Prestamos: $65M in new tax credits come to market
Staff Reports | Digital Free Press

Prestamos CDFI, a division of Chicanos Por La Causa, has been award $65 million in New Markets Tax Credits from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund.

Prestamos is a Community Development Entity that provides capital to businesses and community services projects in highly distressed, low-income communities in Arizona, California, New Mexico, Nevada, and Texas.

This year’s award is the single largest granted in Prestamos’ history and represents the highest amount awarded in 2023 among top recipients across the country. Prestamos has received a cumulative total of $170 million through five previous NMTC awards, according to a press release.

“Prestamos has a deep-seated commitment to alleviate issues of inequality in low-income communities, such as Latino, African American, Native American, and Asian populations in Arizona, California, New Mexico, Nevada, Puerto Rico, and Texas. This award is a testament to the longstanding impact and the trust invested in our mission from the U.S. Department of Treasury,” said Jose Martinez, president of Prestamos CDFI and executive vice president of Economic Development at CPLC.

“We invest in projects that create and preserve living wage jobs, expand critical services such as childcare, quality education, job training, and health care services in underserved communities.”

Prestamos CDFI provides 100% of its investment activities to empower disadvantaged businesses and communities. During the pandemic Prestamos emerged as a leading PPP lender nationwide to meet the urgent needs faced by many individuals, ensuring with honesty and integrity that minority-owned businesses had equitable access to these resources allowing them to remain in business and retain their employees, according to officials there.

The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making investments on qualified projects within economically distressed communities.

Created by Congress in 2001, the credit totals 39% of the original investment amount and is claimed over a period of seven years. This award is part of a $5 billion NMTC allocation authority package announced by the CDFI Fund. Federal data shows that for every dollar of allocation provided under the NMTC program, an additional $8 of private investment is leveraged for the economic development and growth of these underserved groups.

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