Enterprise Financial CDE (EFCDE) is a community development entity that partners with businesses and community service providers committed to investing in eligible, highly distressed communities through the use of federal New Markets Tax Credits (NMTCs), a funding program administered through the Community Development Financial Institutions Fund, a division of the US Treasury.
NMTCs allocated through EFCDE stimulate economic and community development by expanding access to quality jobs and essential community services, improving the opportunities and quality of life for residents in underserved communities.
Since 2010, EFCDE has received $243 million in NMTC allocation and funded projects specific to the needs of each community across our footprint—from federally qualified healthcare centers, educational facilities and wellness centers, to manufacturers seeking growth capital for equipment or inventory. These projects have helped our business and nonprofit partners create and retain more than 8,500 jobs and have brought essential services to more than 72,000 residents of low-income communities. By investing capital in traditionally disinvested areas, we spur both immediate revitalization and continuous economic development in underserved areas.
NMTC loans offer borrowers more flexible and favorable terms than traditional borrowing options, including:
- Below-market interest rates
- Subordinated debt
- Lower origination fees
- Longer period of interest-only payments
- Higher loan-to-value ratio
- Longer payback period
If your business growth plans or community facility is located in a qualified area, you may be eligible for NMTCs to help subsidize your project costs while creating substantial community impact. Use our quick, five-question screening tool to gauge whether your project might be a good fit for a federal tax credit with EFCDE as a partner.
It’s important that you partner with a lender who shares your mission and understands every facet of the NMTC program, from early project phases through the years of compliance and reporting. As a seasoned allocatee, EFCDE is one of the few lenders with deep expertise in helping businesses navigate and close both federal and state NMTC loans, serving as a lender, allocatee or investor in NMTC programs. We partner with you along the journey to ensure success at every milestone—just one of the ways we help the communities we serve thrive.