Enhanced Capital Secures $65M to Fuel Growth in Distressed Communities

NEW YORK, NY – January 13, 2026 – Enhanced Community Development, a subsidiary of investment manager Enhanced Capital, has been awarded a $65 million allocation in New Markets Tax Credits (NMTC) from the U.S. Treasury Department. The award provides a significant infusion of capital aimed at revitalizing economically distressed communities across the United States.

This allocation is a key part of the Treasury's combined 2024–2025 funding rounds, which are distributing a total of $10 billion to 142 designated Community Development Entities (CDEs). For Enhanced Community Development, this marks its eleventh federal award since 2006, bringing its cumulative federal NMTC allocation to $560 million. The new funding will bolster the firm's capacity to channel private investment into high-impact projects that create jobs and expand essential services where they are needed most.

"We're honored to receive this $65 million allocation," said Richard Montgomery, Managing Partner at Enhanced Capital. "The NMTC Program remains a practical way to bring private capital to projects that expand essential services, create and retain jobs, and revitalize local economies. This allocation expands our capacity to finance projects in both urban and rural communities nationwide."

A Proven Engine for Economic Growth

Created by Congress in 2000, the New Markets Tax Credit program is designed to incentivize private sector investment in low-income communities. It achieves this by providing investors with a federal tax credit totaling 39% of their investment, claimed over a seven-year period. The program has become a cornerstone of federal community development policy, demonstrating a powerful multiplier effect. According to Treasury data, the NMTC program has historically generated approximately $8 of private investment for every $1 of federal credit.

Through fiscal year 2023, the program has been instrumental in supporting the creation or retention of over 888,200 jobs and financing the development of more than 268 million square feet of commercial real estate. The 2024-2025 funding rounds, which represent a significant commitment to the now-permanent program, were paired with updates to strengthen compliance and sharpen the program's focus. The Treasury Department has emphasized directing funds toward sustainable job creation, with a notable 20% increase in investments targeted at rural and non-metropolitan communities to support everything from rural hospitals to domestic manufacturing.

These reforms also include enhanced oversight to ensure CDEs adhere to federal guidelines, with the CDFI Fund modifying allocation agreements to reinforce provisions on the permitted uses of NMTCs. This ensures the program's benefits are directed squarely at community revitalization and long-term economic resilience.

A Track Record of Targeted Impact

With a history of deploying over $830 million in both federal and state NMTC investments across more than 140 projects, Enhanced Community Development has a well-established record of transforming these allocations into tangible community assets. The firm's portfolio showcases a diverse range of projects, including manufacturing facilities, healthcare providers, educational institutions, and community centers.

Past investments illustrate the real-world impact of this financing. In Reno, Nevada, NMTC financing facilitated the expansion of Northern Nevada HOPES, a Federally Qualified Health Center, allowing it to serve thousands more patients and create new jobs. In Ontario, Oregon, the firm financed the revival of a shuttered onion-processing facility for Fry Foods, bringing vital manufacturing jobs back to a rural area. Other notable projects include the financing of the Capital Area Food Bank in Washington, D.C., which supports hunger relief for over half a million residents, and the redevelopment of a historic St. Louis building into a hotel with workforce housing.

This latest allocation will allow the firm to continue this work with renewed vigor. "This allocation positions Enhanced Community Development to continue financing high-impact projects in both metropolitan and non-metropolitan areas," stated Catherine Blume, a Director at Enhanced Capital. "We will remain focused on projects that expand access to services, create and retain quality jobs, and foster long-term economic resilience."

A Strategic Piece of a Larger Financial Ecosystem

While significant, the $65 million award places Enhanced Community Development in the upper-middle tier of the 142 CDEs that received funding in this competitive round, where individual allocations ranged from $20 million to $95 million. This highlights the firm's consistent ability to secure a meaningful share of available credits, cementing its role as a key player in the impact investing landscape.

This work is a core pillar of the broader strategy at Enhanced Capital, a private credit investment manager founded in 1999. The firm was acquired by P10, Inc. (NYSE: PX) in 2020, integrating its mission-driven approach into a leading private markets platform with over $40 billion in assets under management. The acquisition has allowed Enhanced Capital to leverage the scale and reach of P10 while continuing its focus on project finance and small business lending in the lower-middle market.

The firm's commitment to verifiable results is detailed in its 2024 Community Impact Report, which tracks metrics aligned with UN Sustainable Development Goals. In 2024 alone, its investments supported over 3,300 jobs and the installation of 219 megawatts of clean energy capacity, with 85% of its investments directed toward low-income, rural, or otherwise underserved communities. This data-driven approach to impact measurement underscores how public programs like the NMTC can be strategically deployed by private capital to generate both financial returns and lasting social and environmental benefits.