The New Markets Tax Credit (NMTC) Program serves as a critical financing mechanism for channeling private investment into low-income communities throughout Mississippi. From revitalizing downtown districts in Jackson and Gulfport to supporting manufacturing operations in the Delta region and expanding healthcare infrastructure across rural counties, NMTC financing addresses persistent capital gaps that traditional lending cannot bridge. CBO Financial collaborates with developers, manufacturers, healthcare providers, and community organizations to deliver sophisticated CDFI-based financing solutions that promote sustainable economic growth, generate quality employment opportunities, and strengthen communities across the Magnolia State.
How the NMTC Program Works in Mississippi
The NMTC Program incentivizes qualified equity investments by offering a 39% federal tax credit to investors who deploy capital into designated low-income communities through certified Community Development Entities (CDEs). In Mississippi, this financing tool has proven essential across multiple sectors where conventional lending markets systematically underserve community needs—including manufacturing, healthcare delivery, food processing, agricultural infrastructure, mixed-use commercial development, and educational facilities.
Mississippi faces unique economic development challenges, with many communities experiencing persistent poverty, limited access to capital, and historical disinvestment. The state benefits from active CDEs with specialized expertise in Mississippi’s development landscape and deep relationships with community stakeholders. From automotive supplier facilities along the I-20 corridor to aquaculture operations in the Delta and healthcare centers in underserved rural areas, NMTC program opportunities provide flexible capital structures that complement state incentives and federal programs to make transformative projects economically feasible.
Eligible Projects and Borrowers
NMTC financing supports diverse community development initiatives across Mississippi’s varied economic regions. Eligible projects typically include:
Manufacturing & Industrial Facilities: Automotive suppliers, furniture manufacturing, wood products facilities, metal fabrication plants, and distribution centers that create employment while diversifying local economies in qualifying communities.
Healthcare Infrastructure: Federally Qualified Health Centers (FQHCs), rural hospitals, specialty care facilities, dental clinics, behavioral health centers, and medical office buildings are expanding access in Mississippi’s medically underserved areas.
Food & Agricultural Processing: Catfish processing facilities, poultry operations, grain processing plants, cold storage facilities, and value-added agricultural enterprises, strengthening Mississippi’s agrarian economy.
Commercial & Mixed-Use Development: Grocery stores addressing food deserts, downtown revitalization projects, office buildings, hotels, and retail centers that anchor neighborhood commercial districts in low-income census tracts.
Educational Facilities: Charter schools, early childhood education centers, vocational training facilities, STEM labs, and community college expansions serving disadvantaged student populations across the state.
Community Facilities: Cultural centers, performing arts venues, community centers, libraries, and nonprofit service facilities that enhance quality of life and provide essential programming in underserved communities.
Eligible borrowers include for-profit enterprises, nonprofit organizations, community development corporations, tribal entities, and public-private partnerships that are committed to projects that satisfy community development financial institution standards. CBO Financial’s NMTC advisory services guide applicants through eligibility verification, census tract qualification analysis, and optimal financing structure development to maximize competitive positioning.
Benefits of the NMTC Program for Mississippi
The NMTC Program delivers substantial economic and community benefits throughout Mississippi:
Job Creation & Economic Opportunity: NMTC projects generate construction employment and permanent jobs in areas with persistently high unemployment and underemployment. Many Mississippi projects establish local hiring commitments and workforce-training partnerships, creating pathways to family-sustaining careers for residents who have faced limited economic opportunities.
Private Capital Attraction: The tax credit incentive draws institutional investors and private capital into Mississippi communities that market forces alone consistently overlook, effectively leveraging limited public resources to multiply the impact of community investment.
Downtown & Main Street Revitalization: NMTC-financed anchor projects catalyze broader redevelopment in Mississippi’s downtowns and historic commercial districts, attracting subsequent private investment and reversing decades of disinvestment and population decline.
Healthcare Access Expansion: In a state facing significant healthcare provider shortages and health outcome disparities, NMTC has proven instrumental in financing community health centers and specialty facilities that bring essential medical services to underserved populations.
Gap Financing Solution: For projects where development costs exceed what projected cash flow can support through conventional financing—whether due to higher construction costs, environmental remediation needs, or lower market rates—NMTC provides the critical capital difference that enables project viability.
Community Wealth Building: By directing patient capital into businesses and facilities serving local needs, NMTC helps build community-controlled economic assets and long-term resilience rather than extracting resources from vulnerable areas.
Mississippi projects have successfully leveraged NMTC financing to preserve historic buildings, expand rural healthcare networks, support food processing operations, develop workforce training centers, and create mixed-use developments in downtown districts across the state. CBO Financial encourages developers and organizations to request a complimentary project analysis to explore how NMTC can strengthen project feasibility while maximizing community impact.
Regulatory & State Development Framework
Mississippi maintains a supportive state-level infrastructure for community economic development that complements federal NMTC financing. The Mississippi Development Authority (MDA) serves as the state’s lead economic development agency, administering various incentive programs that layer effectively with NMTC, including Advantage Jobs tax credits, infrastructure grants, workforce training assistance, and the Mississippi Small Business Revolving Loan Fund. MDA’s Community Services Division specifically focuses on community development initiatives in underserved areas where NMTC projects are typically located.
Additionally, the Mississippi Community College Board coordinates workforce development programs that support NMTC project employment goals. In contrast, regional planning and development districts provide technical assistance and coordination for community development initiatives across the state.
Mississippi is served by several CDEs that maintain active NMTC allocations and have intimate knowledge of the state’s economic geography and development challenges. The U.S. Department of the Treasury’s CDFI Fund oversees the national NMTC Program, publishing allocation awards, compliance requirements, and technical guidance essential to successful project implementation.
CBO Financial maintains comprehensive expertise in both federal NMTC regulations and Mississippi-specific development incentives and financing tools. Our team coordinates across multiple capital sources—including state tax credits, historic preservation incentives, opportunity zone benefits, federal Delta Regional Authority programs, and local economic development funds—to construct integrated financing solutions serving both project economics and community development objectives.
Get Started
If you’re planning a community development project in a qualifying Mississippi location, NMTC financing may provide the catalytic capital necessary to advance from concept to completion. CBO Financial delivers comprehensive support throughout the entire NMTC process—from initial project assessment and census tract qualification to CDE partner identification, transaction structuring, investor coordination, and ongoing compliance management.
Our experience across Mississippi’s diverse regions and project types provides valuable insight into competitive positioning and what makes applications successful with CDE allocatees. Whether you’re expanding a manufacturing facility in a Delta community, developing a healthcare center in a rural county, creating mixed-use space in a historic downtown district, or establishing food processing infrastructure supporting local agriculture, our team can evaluate NMTC alignment with your capital strategy.
Connect with CBO Financial today to discuss your Mississippi project and begin your NMTC financing evaluation. We’ll assess eligibility requirements, identify appropriate CDE partners with experience in Mississippi allocations, and chart a financing pathway that maximizes community impact while achieving your development goals.