JS-2439: The Honorable John W. Snow <script type="text/javascript"> var wmNotice = "UNT Web Archive - External links, forms, and search boxes may not function within this collection. Url: http://ustreas.gov/press/releases/js2439.htm time: 0:22:08 Aug 31, 2009"; var wmHideNotice = "hide"; var contextRoot = "https://webarchive.library.unt.edu/eot2008/"; </script> <script type="text/javascript" src="https://webarchive.library.unt.edu/eot2008/js/disclaim.js"></script> <BR>Remarks on the New Markets Tax Credits Program



	FROM THE OFFICE OF PUBLIC AFFAIRS May 11, 2005 JS-2439 The Honorable John W. Snow Remarks on the New Markets Tax Credits Program Good morning, everyone, and congratulations to all of today's awardees. Communities across the country are fortunate to have each and every one of these groups working on its behalf. One of the President's top priorities is to have a growing economy that creates lots of good jobs. He is especially interested in promoting economic growth and entrepreneurship in economically distressed areas. This is where the New Markets Tax Credits come in. In this, the third round of the New Markets Tax Credits (NMTC) program, 41 awardees nationally will receive an aggregate total of $2 billion in New Markets Tax Credits equity allocations. Each one was selected through an intensely competitive process; you should be extremely proud of this accomplishment. We believe that you best know the answer to some vital questions: What is good for the communities you serve? What type of new venture would create the most jobs and help the most people? For instance, the people who live and work here in this area know the answers to those questions better than the federal government. Although it is the Capital, the case with Washington is no different than any other locality in the country – the people closest to the community, the people who know the neighborhoods and their residents, those are the people who know best what the community needs. The desire to encourage business investment and job creation in areas of need is the idea behind the NMTC program. Its simple but vital purpose is to stimulate economic and community development and job creation in the nation's low-income communities by attracting capital from the private sector. The NMTC program is an important community and economic development tool because it should stimulate job creation – and nothing is more important to our economy, to individuals, and to families than the creation of new jobs. Self-Help Ventures Fund (SHVF), for example, creates jobs by making commercial loans to businesses, community facilities and commercial real estate projects located in low-income communities. With its allocation, SHVF will continue to expand its geographic lending territory and offer loan products that provide better terms and conditions, such as loans at interest rates up to two percent lower than SHVF's regular, risk adjusted loan rates. Another example is the good that Wachovia Community Development Enterprises (WCDE) will do by using the value of the NMTC to subsidize the cost of financing real estate transactions by lowering the interest rate to qualified real estate and non-real estate businesses. They will use the capital to finance the construction, rehabilitation and operation of office, retail, industrial, mixed-use and community service properties and businesses. And that's terrific news for the communities where that development will take place. The infusion of capital that groups like SHVF and WCDE brings to local business is a recipe for success. I look forward to seeing the results that NMTCs can bring to this wonderful city, and communities across the nation, with the help of these tax credits. The message the New Markets Tax Credit program sends is: "This community is open for business." I am thrilled that message is going out in the city that houses the nation's Capitol on this day. Today's announcement is a step toward a brighter future for this area, and for every community that is home to an NMTC awardee.