Enterprise Financial CDE FAQ

Q. Who is Enterprise Financial CDE?

Enterprise Financial CDE, LLC (EFCDE), an affiliate of Enterprise Bank & Trust, is a multiple award winner and allocatee of New Markets Tax Credit allocation from the federal CDFI Fund. Headquartered in St. Louis, Missouri, EFCDE is a national community development entity (CDE) specializing in community and economic development investments in the Midwest and Southwest, including Illinois, Missouri, Kansas, Arizona, New Mexico, Nevada, Texas and Southern California, as well as contiguous states.

Q. What does EFCDE do?

We provide below-market loans to small businesses in urban and rural areas that stimulate job creation and economic development across highly distressed areas, and to strategic community service providers that expand access to essential services, and improve opportunities and the quality of life for low-income residents in underserved communities. 

Q. What is the NMTC program through EFCDE?

EFCDE works to reverse disinvestment in distressed communities by investing in growth-oriented small businesses and needed community facilities through attractive and flexible financial products not available or affordable in traditional markets. A key focus of EFCDE is to address the Social Determinants of Health. Inclusive of economic and social factors, our investments stimulate job growth that improves financial empowerment for residents of distressed communities and improve access to health and essential community services.

Through the NMTC program, EFCDE bridges critical financing gaps that help fund large real estate projects—such as new construction for a healthcare facility or warehouse—as well as smaller but essential working capital and operating funds needed for sustainability and growth of small businesses and nonprofits, such as the purchase of new equipment, to fund inventory or hire critical staff.

Q. Is there data that shows EFCDE’s impact?

• 14 years of experience as a CDE; 18 total years as a leverage lender
• 7-time NMTC awardee
• $353 million in allocation authority
• 61 deserving borrowers across the Midwest and Southwest
• $857 million+ in total project costs
• 10,899+ jobs created and retained
• Expanded access to essential services like healthcare, wellness and education for more than 114,000 low-income or underserved persons

As of September 2024.
For more data on EFCDE's impact, see our By the Numbers: EFCDE Infographic

Q. How does EFCDE identify and address critical needs?

We know every community in our service area is different, with unique challenges and creative ways to meet those challenges. That's why we conduct and review local needs assessments to learn about the key economic development opportunities that can change the trajectory of an underserved community and its residents.

We also partner with our affiliate, Enterprise Bank & Trust, along with local community leaders, to ground ourselves in the priorities of each community to ensure projects are collaborative, well-supported and accessible for end users. Our approach is to ensure that when investments are complete, all parties benefit.

Q. How does a partnership with EFCDE look throughout the lifecycle of a project?

EFCDE is a champion of NMTC projects and of the communities in which we serve. With roots in a community-focused business bank built on relationships, we play a high-touch advisory role throughout the NMTC process. From initial evaluation and project underwriting, through the seven-year compliance period and beyond, EFCDE is a consultative partner with project sponsors, developers and businesses to ensure the project is not only successful, but also well-positioned to transition from subsidized, below-market flexible financing to conventional marketplace financing, and that the community’s longer-term needs are realized.

Q. What sets EFCDE apart from other community development entities?

EFCDE works closely with borrowers to navigate the NMTC process, including securing additional partners for leverage debt, legal counsel, bringing in other CDEs as needed, and introducing investors. By playing an active role in project cultivation, EFCDE ensures that the most impactful projects and businesses are able to bring projects to fruition successfully and efficiently.

Q. What favorable rates and terms does EFCDE offer?

• Below-market interest rates
• No origination fee
• Longer interest-only period
• Higher loan-to-value ratio
• Longer amortization period
• Flexible credit standards
• Non-traditional collateral
• Lower debt service coverage ratio
• Subordination

To learn more about the use of NMTCs and their impact, read our stories and visit ntmccoalition.org.