For many low-income cities and towns, attracting traditional financing for business development or expansion is one of the greatest hurdles to revitalizing their communities.
The Federal New Markets Tax Credit (NMTC) Program attracts private capital to underserved areas by providing a tax incentive for investments placed in businesses located in qualified low-income areas. These investments encourage the development of new businesses and jumpstart the growth of existing businesses, which in turn employ local residents, increase the availability of goods and services, and expand the tax base – positive impacts that ripple out through the community.
The flexibility of the NMTC Program also means it can serve as a valuable source of funding for service providers, such as health clinics and educational non-profits, to expand their facilities and impact within the communities they serve.
This powerful public-private partnership combines capital market discipline and funding with government support and oversight by the involvement of certified Community Development Entities like CEI Capital Management that source projects for investment and manage loan servicing and compliance.
For more on the technical aspects of the program, download our NMTC Program Overview.
To apply for NMTC Financing, please review our underwriting criteria.