Treasury Awards $10 Billion in New Market Tax Credits Funding for Small Business, Rural America
January 12, 2026
Bob Coleman
Founder & Publisher
Main Street Monday: Treasury Awards $10 Billion in New Market Tax Credits Funding for Small Business, Rural America
The Treasury’s announcement awarding $10 billion in New Markets Tax Credit allocations to 142 Community Development Entities matters to SBA lenders, especially with the anticipated increase in SBA 7(a) and 504 loan size to $10 million for manufacturers.
This allocation opens new opportunities for lenders looking to expand SBA lending into larger, more complex transactions that require a layered capital stack. The infusion of New Markets Tax Credit equity reduces lender risk while improving the borrower’s odds of success.
Under the program, funds flow through a Community Development Entity, a federally certified intermediary. A CDE’s primary mission is to channel capital into low-income and economically distressed communities. Once a CDE secures an allocation, it raises investor equity and deploys that capital as loans or equity investments into qualified businesses and projects located in distressed census tracts, often on more flexible terms than conventional financing.
Most CDEs are affiliated with mission-driven Community Development Financial Institutions, including community banks, credit unions, and loan funds that already provide affordable financial products in underserved areas. Many hold dual certification, allowing them to combine CDFI lending expertise with NMTC-enhanced capital to lower the overall cost of capital for local growth and development.
SBA loan programs, including 7(a) and 504 loans, can be paired with NMTC structures in a coordinated capital stack. SBA provides the senior debt, while the CDE’s NMTC allocation fills the subordinated position.
One recipient is Heartland Renaissance Fund, affiliated with ACC Capital in Arkansas.
“An $85 million allocation is a game-changer for the communities we serve,” says Sam Walls, Chief Executive Officer of Heartland Renaissance Fund. “We’re talking about funding that will help expand or build manufacturing facilities that bring jobs back to Main Street America.”
This award brings Heartland Renaissance Fund’s total allocation to $510 million since the program’s founding in 2003. With prior awards, the fund has financed more than 50 businesses and helped create or retain over 8,000 jobs.
“In small towns across the heartland, we see incredible potential that just needs the right capital partner,” Walls adds. “These NMTC funds allow us to be that partner.”
Heartland Renaissance Fund plans to deploy the $85 million allocation into manufacturing projects across Arkansas, Louisiana, Missouri, Mississippi, Oklahoma, Tennessee, and Texas.
“This award puts us on track to create jobs over the next seven years while increasing economic activity. It represents families with stable paychecks, communities with renewed hope, and local economies with sustainable growth.”
The New Markets Tax Credit program allows individual and corporate investors to receive a federal income tax credit spread over seven years.
The NMTC allocations announced in December reflect a 20 percent increase in investment directed to rural and non-metro communities. These investments support:
- Small Business growth and expansion
- Domestic manufacturing and other job-producing projects
- Rural hospitals and essential community health infrastructure
- Affordable housing development