New Markets Tax Credit

NMTC Details

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
  • Native American projects that generate living-wage jobs for tribe members
  • 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 the Western United States (California, Oregon, Washington, Montana, Idaho, Nevada, Arizona, Utah, Wyoming, Colorado, New Mexico, Texas, and Hawaii)
  • Commercial projects involving new construction or substantial rehabilitation of space (office, retail, industrial, etc.), not for most types of housing
  • 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:

Jeff Wells
Vice President, New Markets Fund Director