The New Markets Tax Credit (NMTC) Program serves as a strategic financing tool for directing private investment into low-income communities throughout Minnesota. From revitalizing neighborhoods in Minneapolis and St. Paul to supporting food processing facilities in rural counties and advancing healthcare infrastructure across Greater Minnesota, NMTC financing bridges critical capital gaps that conventional lending cannot address. CBO Financial partners with developers, agricultural enterprises, nonprofits, and community organizations to structure comprehensive CDFI-based financing solutions that drive sustainable economic development, create quality employment, and strengthen Minnesota’s diverse communities.
How the NMTC Program Works in Minnesota
The NMTC Program incentivizes qualified equity investments by providing a 39% federal tax credit to investors who commit capital to designated low-income communities through certified Community Development Entities (CDEs). In Minnesota, this financing mechanism has proven particularly effective across sectors where traditional lending markets fall short—including food and agricultural processing, advanced manufacturing, healthcare delivery, mixed-use commercial development, and community facility infrastructure.
Minnesota’s economic landscape encompasses both densely populated urban centers experiencing concentrated poverty and rural communities facing declining populations and limited access to capital. The state benefits from several active CDEs with specialized knowledge of Minnesota’s economic development challenges and opportunities. From food cooperatives serving immigrant entrepreneurs in the Twin Cities to manufacturing facilities supporting agricultural supply chains in Greater Minnesota, learn about how NMTC financing provides flexible capital structures that layer effectively with state and regional incentives to enhance project feasibility.
Eligible Projects and Borrowers
NMTC financing in Minnesota supports a broad spectrum of community development initiatives aligned with the state’s economic strengths. Eligible projects typically include:
Food & Agricultural Processing: Meat processing plants, dairy facilities, grain processing operations, commercial kitchens, food hubs, and value-added agricultural enterprises that strengthen Minnesota’s food system while creating rural employment.
Manufacturing & Distribution: Advanced manufacturing facilities, precision agriculture equipment production, logistics centers, and industrial operations that diversify local economies and provide family-sustaining wages.
Healthcare Infrastructure: Community health centers, rural critical access facilities, specialty care clinics, behavioral health centers, and dental practices are expanding access in medically underserved areas throughout Greater Minnesota.
Commercial & Mixed-Use Development: Grocery stores addressing food deserts, downtown mixed-use projects, office buildings, and retail centers that anchor neighborhood economies in qualifying census tracts.
Educational Facilities: Charter schools, early childhood education centers, vocational training facilities, and STEM-focused learning environments serving disadvantaged student populations.
Community & Cultural Facilities: Immigrant resource centers, arts venues, recreation facilities, libraries, and nonprofit service centers that enhance community capacity and cultural vitality.
Eligible borrowers include for-profit developers, agricultural cooperatives, nonprofit organizations, community development corporations, and tribal entities, all of which are committed to projects that satisfy CDFI program requirements. CBO Financial’s NMTC consulting services help applicants navigate qualification criteria, census tract analysis, and financing structure optimization to position projects competitively.
Benefits of the NMTC Program for Minnesota
The NMTC Program delivers measurable economic and social impact across Minnesota communities:
Employment Creation & Workforce Development: NMTC projects generate both construction jobs and permanent employment opportunities in areas experiencing higher unemployment or underemployment. Many Minnesota projects incorporate workforce training components, creating career pathways particularly for immigrant communities and rural residents.
Private Capital Leverage: The tax credit incentive attracts institutional investors and private capital that market forces alone would not direct to underserved areas, effectively multiplying the impact of limited public resources and philanthropic capital.
Rural Economic Vitality: In Greater Minnesota, NMTC financing has proven essential for agricultural processing facilities, main street revitalization, and infrastructure projects that conventional lenders view as too risky despite strong community need.
Urban Neighborhood Transformation: NMTC-financed anchor projects in Minneapolis, St. Paul, Duluth, and Rochester catalyze broader neighborhood investment, reversing disinvestment cycles and creating sustainable mixed-income communities.
Financial Gap Resolution: For projects where development costs, market conditions, or risk profiles create financing gaps—whether due to environmental remediation, adaptive reuse complexity, or lower revenue potential—NMTC provides critical capital enabling project completion.
Community Wealth Building: By channeling patient capital into locally-rooted businesses, cooperatives, and community facilities, NMTC helps build community-controlled assets and economic resilience rather than extracting wealth from vulnerable populations.
Minnesota projects have successfully utilized NMTC financing to expand healthcare networks, support immigrant-owned food enterprises, revitalize historic downtown buildings, develop innovation hubs, and create community-serving facilities across both urban and rural geographies. CBO Financial encourages project sponsors to schedule a free project analysis to determine how NMTC can strengthen financial feasibility while maximizing community benefit.
Regulatory & State Development Framework
Minnesota maintains strong state-level support for community economic development that complements federal NMTC financing. The Minnesota Department of Employment and Economic Development (DEED) serves as the state’s primary economic development agency, administering various incentive programs that layer effectively with NMTC, including job creation tax credits, angel investment tax credits, and Greater Minnesota business development grants. DEED’s Office of Economic Development focuses explicitly on strategies supporting underserved communities where NMTC projects typically locate.
Additionally, the Greater Minnesota Partnership works to attract and retain businesses in Greater Minnesota communities, while the Metropolitan Council coordinates development planning in the seven-county Twin Cities metropolitan area. These entities provide resources and coordination beneficial to NMTC project sponsors.
Minnesota is home to several regionally focused CDEs that maintain active NMTC allocations and have a deep understanding of the state’s economic geography and development needs. The U.S. Department of the Treasury’s CDFI Fund administers the national NMTC Program, publishing allocation awards, compliance requirements, and technical guidance essential for project sponsors.
CBO Financial maintains comprehensive expertise in both federal NMTC regulations and Minnesota-specific development incentives, ensuring projects achieve full compliance while accessing maximum available financial support. Our team coordinates across multiple funding sources—including state tax credits, historic preservation incentives, opportunity zone benefits, and regional revolving loan funds—to create integrated capital stacks serving both project economics and community development goals.
Get Started
If you’re developing a project in a low-income Minnesota community, NMTC financing may provide the catalytic capital necessary to move from planning to implementation. CBO Financial offers comprehensive support throughout the entire NMTC process—from initial eligibility assessment and census tract qualification to CDE partner identification, transaction structuring, and ongoing compliance management.
Our experience across Minnesota’s urban and rural geographies and diverse project types provides a valuable perspective on competitive positioning and what makes applications successful with CDE allocatees. Whether you’re expanding a food processing operation in Greater Minnesota, developing a community health center on tribal lands, creating mixed-use space in an urban neighborhood, or establishing an innovation facility serving immigrant entrepreneurs, our team can evaluate whether NMTC aligns with your financing strategy.
Contact CBO Financial today to discuss your Minnesota project and explore NMTC program opportunities. We’ll assess eligibility criteria, identify appropriate CDE partners, and outline a financing pathway that maximizes community impact while achieving your development objectives.