Does the New Markets Tax Credit Fit Your Project?
Projects We Finance
- Non-profit community facilities providing services (such as education, healthcare, food, shelter, etc.) to low-income communities.
- Economic development projects that catalyze low-income neighborhoods, such as grocery stores located in "Food Deserts" where nutritious foods are not available.
Successful Project Candidates
- Are located in "targeted distress" (very low income) census tracts
- Near-bankable (e.g. strong borrower and project that can succeed with the extra support of NMTC)
- Major portion of financing already lined up
- Mostly for new construction
- Substantial rehabilitation permitted only if equal to or greater than 25% of the adjusted basis of the building
- Not for rental housing, but the commercial portion of a qualified mixed use project may be eligible. Not for for-sale housing.
Key Project Criteria
- $5 million minimum project size
- Located in a qualified low-income census tract in California
- Commercial projects involving new construction or substantial rehabilitation of space (office, retail, industrial, etc.)
- Must provide clear and substantial benefits to low-income populations including significant construction and borrower jobs
NMTC Financing Terms
- Below market rates for 7-year term loans
- Interest-only loans that result in lower payments
- Smaller borrower equity requirement than conventional loans
- Option of debt to equity conversion
For more information:
Vice President, New Markets Fund Director