Merrimack County Savings Bank (the Merrimack) recently purchased $25,000 in tax credits through the New Hampshire Community Development Finance Authority (CDFA) in support of the Regional Economic Development Center (REDC) of Southern NH. The Bank’s investment goes toward REDC’s NH New Americans Loan Fund.
In partnership with stakeholders located statewide, REDC promotes business development and job creation for new Americans (first generation immigrants) located in New Hampshire through the NH New Americans Loan Fund. The organization works independently or in partnership with local lenders to help borrowers secure the micro-funding needed to start or grow their small businesses. Microloans range from $5,000 to $50,000, with funding generally used for working capital to increase the business or to purchase equipment and inventory. REDC also provides comprehensive free technical assistance to help clients achieve commercial success.
“We’re incredibly grateful for this generous contribution from Merrimack County Savings Bank, who is a great lending partner,” said Laurel Adams, REDC President. “Their purchase will help us further our mission of increasing business development and job creation among local new Americans.”
“On behalf of the Merrimack and our employees, we are thrilled to support REDC,” said Linda Lorden, President of Merrimack County Savings Bank. “REDC creates jobs, facilitates emerging entrepreneurship and encourages diversity. It’s very rewarding to be able to make contributions to outstanding organizations like this one, who positively impact the people and economy of our community.”
CDFA tax credits allow businesses to fund qualifying economic or community development projects in exchange for a tax credit that can be applied against state business tax payments. The tax credits are administered by the New Hampshire Community Development Finance Authority (CDFA). Any business with operations in NH that contributes to a CDFA tax credit project receives a NH state tax credit worth 75% of their contribution. The credit can be used over a period of five years to reduce the business’ state tax liability (business profits, business enterprise or insurance premium taxes). The tax credit program allows NH businesses to use their state tax dollars to support local projects that they care about. CDFA reviews many project applications each year and awards tax credits to those they determine are feasible and will make the biggest impact on economic development in the state. For more information, visit nhcdfa.org.
Founded in 1994 Regional Economic Development Center is a private, non-profit organization that offers technical assistance, financing through various funding sources and business development training. The REDC seeks to promote responsible, sustainable economic development activities throughout New Hampshire. Jobs are created for low to moderate income people through alternative financing for business and industrial expansion/relocations, which in turn provides tax relief for the communities and regions being served by the REDC. For more information, visit redc.com.