HOPE Awarded $25 Million to Stimulate Mid South Economy




Delta Memorial Hospital in Dumas, Arkansas, is one
recipient of an NMTC loan. The funding allowed the
only medical facilty for miles to stabilize and grow.

Regional Organization Will Support Affordable Housing, Job Creation

JACKSON, MS – The United States Department of the Treasury has awarded HOPE (Hope Enterprise Corporation) $25 million in New Markets Tax Credits (NMTC) to stimulate economic development in distressed areas of Arkansas, Louisiana, Mississippi, and Tennessee. HOPE is among a select group of 66 organizations out of 345 applicants from across the nation to receive an allocation.

This award is the largest received by HOPE under the program.  It will be used to finance high impact projects and businesses that provide important services and self-sufficient wages in low-income communities.  Previous rounds included two awards of $15 million and one award of $20 million.  Using the previous allocations, HOPE has financed 108 projects for a total of more than $71 million.  That includes 23 NMTC loans for nearly $6 million in Arkansas; 46 NMTC loans for more than $20 million in Louisiana; 36 NMTC loans for more than $44 million in Mississippi: and 3 NMTC loans for $830,000 in Tennessee.

“This allocation is recognition of HOPE’s work to provide affordable financing to underserved communities and support effective growth,” said HOPE’s Chief Executive Officer Bill Bynum.  “As the economy continues to moving forward, we will use the tax credits to encourage investment in the nation’s poorest region.  NMTC-supported loans will help create jobs and provide opportunity to people who need them most.”

Congress enacted this federal income tax credit as part of the Community Renewal Tax Relief Act of 2000. Many rural and inner-city regions of the country have suffered from a chronic shortage of capital for economic development.  Private capital tends to flow toward where money is already accumulating—in fast-growing metropolitan areas.  A desire to bring economic prosperity to low-income communities resulted in the New Markets Tax Credit program.

“The New Markets Tax Credit addresses one of the most significant obstacles to economic development that low-income communities face: a lack of access to patient, private investment capital,” said Treasury Assistant Secretary for Financial Institutions Cyrus Amir-Mokri.  “The $31 billion worth of tax credits awarded in past years have gone toward preserving hundreds of thousands of jobs and bringing community facilities and new businesses into neighborhoods that desperately needed them. I expect this round of awardees will continue that trend.”

To receive a NMTC allocation, priority is given to “Community Development Entities” or CDEs, such as HOPE, that have a track record of working in low-income areas and that present a viable plan to raise capital and make investments in distressed areas.

“The capital gap facing entrepreneurs, homebuyers and families in economically distressed communities of the Mid South is higher than any other region of the country,” said Bynum.  “It will take the combined efforts of government, banks, industry, churches, non-profits and individuals to close this gap.  Thanks to the New Markets Tax Credit program, HOPE is poised to play a larger role in helping our region realize its immense potential.”


HOPE is a regional financial institution, community development intermediary and policy center that provides affordable financial services; leverages private, public and philanthropic resources; and engages in policy analysis in order to fulfill its mission of strengthening communities, building assets, and improving lives in economically distressed parts of the Mid South.  Since 1994, HOPE’s efforts have generated over $1.7 billion in financing and benefited more than 130,000 individuals in the Delta, Katrina-affected areas and other distressed communities throughout Arkansas, Louisiana, Mississippi and Tennessee.