The NMTC helps stabilize local economies during economic disasters – both natural and otherwise.
Twice, Congress has provided additional NMTC allocation authority to support communities in crisis. Learn more below.
When economic calamity strikes, commercial credit markets freeze, philanthropy tightens, and state and local tax revenue collapses. All of these counter-cyclical forces combine to exacerbate recessions.
During the early stages of the Great Recession, Congress took a variety of actions to help capital starved communities access the resources they desperately needed. This included an authorization of an additional $1.5 billion in NMTC allocation for 2009 and 2010 to help more communities access financing to keep businesses open and support critical components of the social-safety net, including health centers, homeless shelters, and other community facilities.
Communities put that flexible, patient capital to work, creating or saving tens of thousands of jobs.
Disasters hit our most vulnerable communities the hardest. After Katrina, community development organizations – and the mission-driven service providers they support – played an important role in rebuilding and restrengthening communities that were already struggling with poverty and unemployment before the storm.
In the wake of Katrina, Congress passed The Gulf Opportunity Zone (GO Zone) Act of 2005, P.L. 109-135, which provided a temporary $1 billion expansion of the NMTC.. NMTC allocation was awarded to CDEs targeting the GOZONE in 2 competitive rounds: 2006 and 2007, generating an estimated $2 billion total economic activity and 23,000 jobs in high poverty disaster affected areas of the gulf coast.
The NMTC has also supported the recovery from Hurricane Harvey, Irma, Matthew, and Maria. When floods or tornadoes strike, communities turn to the NMTC to replace or repair damaged hospitals and buildings.