CEI Capital Management is a wholly-owned subsidiary of CEI that deploys capital under the U.S. Treasury Department’s New Markets Tax Credit (NMTC) program and the Maine New Markets Capital Investment (NMCI) program. CEI Capital has placed $944.6 million of NMTC/NMCI capacity in 91 projects, triggering total private capital investment of over $2.6 billion in low-income communities. These projects directly support CEI’s triple bottom-line, “3-E” measures: economic progress, social equity, and environmental sustainability. CEI Capital has a national service area under the NMTC program with an emphasis on rural areas.
The federal NMTC program was designed to stimulate investment and economic growth in low-income communities that are typically overlooked by conventional investors. The program attracts investors to low-income areas by offering a 39 percent federal income tax credit over a seven-year investment period. The tax credits are allocated by Community Development Entities (CDEs), like CEI Capital that apply for the authority to select projects and allocate the credits. The U.S. Treasury’s CDFI Fund has granted CEI and CEI Capital a combined allocation of $913 million in federal NMTC tax credit investment capacity to deploy over the past ten years. CEI Capital works with investors (banks and equity providers) and borrowers (project sponsors) to meet their needs while satisfying the NMTC program requirements and CEI Capital’s own “3-E” investment strategy.
CEI Capital Management creates and preserves jobs and improves quality of life in rural, low-income communities nationwide by providing businesses and nonprofits access to project capital, primarily through NMTC. Together, these projects have:
- Created/Preserved: 5,191 permanent full-time jobs
- Created: 3,374 construction jobs
- Developed: 1,913,860 sq. ft. of property
- Protected: 833,096 acres of land placed under protective easements
- Generated: 77 MW of renewable electricity capacity and 1,195,000 GLs/year of alternative fuels
- Capitalized: $8701,483 of targeted loan funds, $1,250,000 of employee training, and $1,985,000 educational programs
- Developed: 553 units of Affordable Housing
NMTC projects financed by CEI Capital require recipients to participate in community benefit agreements (CBAs), a practice that has been replicated by several other Community Development Entities involved in the program. CBAs bring capital to projects or programs that are not necessarily directly related to the NMTC project. For example, the CBA may stipulate capital allocation for scholarships for local low-income students, reduced rent for a nonprofit, educational or government entity within the renovated or newly-constructed building, or LEED certification. All told, CBAs help ensure that investment dollars address secondary economic development goals for positive, sustainable impact.