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New Markets Tax Credits

New Markets Tax Credits

What is the NMTC Program?

The New Markets Tax Credit Program (NMTC Program) helps economically distressed
communities attract private capital by providing investors with a Federal tax credit.
Investments made through the NMTC Program are used to finance businesses, breathing
new life into neglected, underserved low-income communities. Detailed information on the NMTC Program can be found on the CDFI Fund Website.

Our NMTC Program Experience

Clearinghouse CDFI is one of largest participants in the NMTC Program, with $687 million of Federal NMTC allocation deployed since inception.

By making an equity investment through Clearinghouse CDFI, individual and corporate investors can receive a New Markets Tax Credit worth 39% of the amount invested. Clearinghouse CDFI is then able to use this investment to provide loans to businesses and nonprofits in low-income communities at below-market rates.

To apply for a NMTC loan, check to see if you pre-qualify:

Who Can Benefit from the NMTC?

Markets in America’s severely distressed areas possess enormous untapped economic potential. However, growing businesses in these communities are unlikely to attract the attention of traditional investors who generally work within their existing relationships and communities. Almost all businesses located in low- or moderate-income census tracts could qualify for loans or equity investments.

Clearinghouse CDFI specifically works with the following kinds of projects:

  • Construction-to-permanent financing on commercial projects
  • Permanent financing on recently constructed commercial projects
  • Acquisition financing for owner-occupied businesses
  • Nonprofit and high community impact projects

NMTC Projects

Here are some outstanding New Markets Tax Credit projects for which Clearinghouse CDFI has provided NMTC allocation:

Terms and Conditions

  • Project must be located in a qualified census tract (low-income property)
  • Below-market interest rates
    • Fixed for 7 years
    • Substantial prepayment penalty during first 6 years
  • Potential equity infusion
  • Leverage and non-leverage financing available
  • Flexible underwriting

 

See more projects financed by Clearinghouse CDFI:
https://www.clearinghousecdfi.com/impact/all-impact-stories.