Unlocking Growth: NMTC’s Role in Strengthening the Regional Economy
The region’s continued growth and economic vitality depend on strong support systems for primary-sector businesses—those that bring new dollars into the community and drive long-term expansion. One of the region’s newest tools is the New Market Tax Credit (NMTC) Program, which helps make transformative projects possible by closing critical financing gaps.
Bringing NMTC to the Region: The Role of Dakota Business Lending
The key organization responsible for bringing NMTC resources to the market is Fargo-based Dakota Business Lending (DBL).
“NMTC works to encourage and jumpstart investment in low-income census tracts to create jobs and bring new opportunities to qualifying areas. The goal of a NMTC allocation is to fill a financing gap for transformative and highly impactful projects which bring new opportunities to the State. This transformative program is funded by DBL Equity Partners, an entity of Dakota Business Lending, through a process of investing in and monetizing tax credits to fill a financing gap,” said Steve Dusek, President & CEO, Dakota Business Lending.
The GFMEDC has been instrumental in their support and in partnering with DBL since they began preparing to apply for their first allocation in 2020. DBL provided the vision, leadership, and technical capability to bring this competitive financial resource to the region. The GFMEDC has not only connected critical primary-sector expansion projects to DBL’s NMTC program but also provided market intelligence and project demand insights that helped justify the market need for DBL’s application.
“Dakota Business Lending’s mission is to provide financing solutions through collaborative partnerships (like the GFMEDC) in a supportive and creative environment to grow the economy and create and preserve quality jobs. The NMTC program is an entirely new level of equity investment that complements our mission perfectly while expanding upon our rich 44+ year history of small business lending in the State,” said Dusek.
Delivering Impact: $81 Million and Growing
To date, more than $81 million in NMTC funding has been directed by DBL to support regional companies to grow and expand. These investments not only strengthen individual businesses but also create ripple effects across the broader economy.
Most recently, DBL closed a $7.5 million NMTC allocation to support the rebuilding of Fargo Moorhead Community Theatre (FMCT) in downtown Fargo. While FMCT is a cultural anchor, projects like this contribute to the overall vitality that helps attract and retain workforce—an essential component for primary sector success.
For 79 years, FMCT has provided access to performing arts education and theatrical experiences in the region. After relocating to the Hjemkomst Center in Moorhead in 2021 due to structural issues with its original facility, construction began in May 2024 on a new 38,000-square-foot, six-story mixed-use building in downtown Fargo that will house the theater’s future home.
By filling financing gaps for high-impact projects, NMTC enables developments that might not otherwise move forward—bringing new energy and economic activity to the region. The broader impact is significant. In addition to capital investment, NMTC projects have helped spur nearly 650 jobs and generate approximately $247 million in direct project impact. These outcomes underscore the importance of strategic programs that fuel business growth and strengthen the regional economy.
Real Results for Primary-Sector Businesses
That impact is especially clear in primary-sector success stories like Packet Digital, Marvin Composites, and Dakota MB (Dakota Specialty Milling) who the GFMEDC connected to DBL’s NMTC program.
In 2022, Packet Digital secured a significant contract with the U.S. Navy, prompting expansion into a 25,000-square-foot manufacturing facility in Fargo. To support the project, Packet Digital utilized an $11.2 million NMTC allocation through Dakota Business Lending, under the advisory of the Greater Fargo Moorhead EDC. Within just six months, the allocation was approved—allowing the company to move quickly and continue its growth trajectory.
Programs like NMTC are essential to ensuring primary-sector businesses have the resources they need to expand, compete, and bring new investment into the region—ultimately strengthening the entire economy.
