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Basic Components of a CEI Facilitated “Model” NMTC Project |
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Model NMTC Project Components:
- Project or business capital requirement of $1 million to $30
million (preferably over $2 million).
- Deals in which "substantially all" (85%) of the capital can
stay invested in the project for the 7-year tax credit period (with acceptable
refinance risk at the end of this seven years).
- The type of business investments eligible under the NMTC
program is very broad allowing virtually any real estate project or operating
business. (There are some exceptions to
this eligibility, such as insurance companies and others.) Projects can be undertaken by either
for-profit or nonprofit entities.
- CEI brings a mission-oriented perspective to underwriting
proposed NMTC transactions. An
evaluation of a project's likelihood of financial success is only one element
that we consider. CEI approaches each
deal more holistically using a "triple bottom-line" approach. This more dimensional review of a proposed
NMTC project is sometimes also referred to as "three-E" underwriting.
- Strong economic development impact (direct or indirect),
such as helping to create or retain jobs; acting as the catalyst for larger or
additional development or redevelopment, infusing sources of new investment
capital into an under-served, low-income area; creating new access to community
services.
- Positive social and environmental impacts that could include
efforts such as providing new or expanded community services, creating or
retaining jobs for low-income people, using recycled materials, increasing
energy efficiency, advancing "green" building concepts, supporting sustainable
forestry, etc.
- While CEI will focus principally in the Maine, New
Hampshire, Vermont, western Massachusetts and western New York markets, it also
now has the ability to do NMTC transactions anywhere in the U.S.
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Subsidiaries 
Maine Legislature Passes Model Anti-Predatory Lending Bill.