Novogradac Journal of Tax Credits • Volume VII • Issue XI

The United States Department of Agriculture (USDA) business and industry loan guaranty program has been an important economic development financing tool for rural America. Under the American Recovery and Reinvestment Act of 2009 (ARRA), more than $1.6 billion was authorized for the loan guaranty program. Similarly, the New Markets Tax Credit (NMTC) program, amended in 2006 to ensure that non-metropolitan communities were allocated a proportional share of qualified lowincome community investments, has accounted for significant investment activity in rural communities. From 2003 to 2011, more than $3.5 billion was invested in non-metro census tracts under the NMTC program. Unfortunately, until now these two programs could not be combined.

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