New Markets Tax Credits
The New Markets Tax Credits (NMTC) program is a $60 billion federal program designed to incentivize private investment in low-income communities. NMTCs are provided to financial institutions in exchange for equity investments that eligible businesses can use to subsidize project development costs.
Here’s the bottom line: Attracting NMTCs to a project can equate to roughly 20% of a project’s cost in flexible debt or equity-like financing, including very low-interest loans that may be forgiven at the end of seven years. As seasoned veterans we serve as an access point to the NMTC industry for socially responsible organizations, municipal economic development agencies and for-profit developers.
For more information on NMTCs including qualifying criteria and the application process, please review our NMTC overview.
Our services ease your way through the NMTC process from start to finish:
NMTC Placement Agent
Our subsidiary, Community Development Funding, LLC (CDF), has received $150 million in NMTCs in six awards, including in the first two rounds – we’ve literally been involved since the beginning in 2003 – and we offer these credits to selected projects when they are available. If we don’t have NMTCs available, we can act as an access point to the industry by locating other sources of tax credits for you. We prepare comprehensive financing request packages, help negotiate terms and take a leadership role in closing the financing. Our detailed placement services for qualified borrowers have secured NMTCs which support more than $250 million in development projects.
CDE Consulting Services
Community Development Entities (CDE) serve as financing intermediaries for the NMTC program. Not only can we assist clients in applying for and receiving certification of a CDE, our knowledgeable on-staff technical writers are experts at crafting compelling NMTC applications. In addition, once you have an award, CBO can provide training and guidance regarding management, deployment and compliance with the program.
Interested? Learn more about our NMTC consulting services by contacting our offices at 410-730-0490 or at email@example.com