Are New Markets Tax Credits right for you?
Determine if your project qualifies for this funding opportunity
Are you planning a substantial project or seeking funds to expand your business but lack the capital to bring it to fruition? Review these five initial eligibility requirements to determine whether a subsidized loan from Enterprise Financial CDE (EFCDE) could be a smart move for your project.
1. Your project or business is located in a New Markets Tax Credit (NMTC) qualifying census tract.
Basic eligibility for NMTC requires that an investment be in a census tract with income at or lower than a given percentage of area median income, or poverty to be greater than a given percentage and/or unemployment to be 1.5 times the national average (percentages varying based on your project’s geographic location).
2. Your project or business will yield benefits to low-income communities, or residents of low-income communities, for example: job retention or creation, increased access to important social services or benefits, etc.
The New Markets Tax Credit Program is an important source of financing to help businesses and community facilities bring needed benefits to underserved metro and rural communities. Borrowers receive subsidized funding while community members and their residents prosper from thriving businesses and services previously undercapitalized.
3. Your funding need is at least $500,000.
EFCDE offers two flexible below-market debt products to fund borrowers who find challenges securing affordable capital in the traditional market. Large-scale real estate and capital improvement projects benefit from our below-market Capital Project loans that exceed $5 million. Businesses in need of working capital or equipment loans ranging from $500,000 to $5 million benefit from our incomparably flexible Loan Fund, which overcomes conventional barriers, making business growth possible.
4. Community stakeholders, such as local business leaders, municipal partners and/or employees, support your project or business expansion plan.
We believe any significant community investment, such as New Markets Tax Credits, should seek the collaborative partnerships and engagement of the stakeholders who will benefit from the project. Many often fulfill part of a larger economic development initiative in their communities. EFCDE can help work with partners to help assess such support.
5. NMTCs will play a decisive role in your overall capital stack.
NMTCs can be the critical link to moving your business or community project forward. If you think it might be and your project meets the requirements above, your project could be a good fit for NMTC subsidies and a great fit with us. Complete the form below to get started.
Other criteria could also ensure eligibility. EFCDE’s project intake and underwriting process will provide a thorough review of all criteria necessary.