November 5, 2020
Over the years, we have built a track record of public-private partnerships with state and federal economic development organizations, facilitating the flow of billions of dollars into underserved communities. During this election season, just as in those past, we’re often asked about ongoing opportunities for the types of funds and programs we participate in – such as New Markets Tax Credit (NMTC), the Rural Business Investment program and the Low-Income Housing Tax Credit program.
What we’ve seen in our nearly three decades in business is this: no matter who wins any election, as long as some of our communities are struggling and others are thriving, there’s going to be a call for investment and effort to make change and bring opportunities to those communities that need it. We’ve seen this over and over again. And while financing models and economic development programs may potentially be different—in either name or philosophy—at the end of the day, both parties are looking for ways to create opportunities for distressed communities.
Given what we know about the income inequalities in this country and the crises that have entrenched them even further, we know there is work to be done. Programs like NMTC, attracting private capital to low-income communities to break the cycle of disinvestment, have long helped to grow businesses, create jobs and reinvigorate struggling communities. Even amid the sheer enormity of the COVID-19 crisis and its impact on small businesses and workers, we see how NMTC-driven investments can cut against long-term inequities.
As we move forward after the election, we will be watching carefully to see what happens with a new stimulus package, including aid for small businesses, many of which were broadsided by the pandemic’s economic repercussions. A divided government and Congress, as it looks now, could mean a smaller stimulus bill or fewer Paycheck Protection Program updates for small businesses. Though $525 billion in PPP funds have already been approved, many businesses that have suffered most need another dose of PPP funds.
We know that getting capital into the hands of small businesses—especially those in distressed communities—is a critical step, keeping paychecks flowing and putting households and communities on a path towards recovery. That’s why, regardless of who wins or loses in this 2020 election cycle, we will continue to provide support and guidance for small businesses and their employees. We’ll keep watch on what happens in Washington and in state legislatures, and be a resource as programs and actions to help drive change continue.
