One of the persistent economic challenges our nation’s low-income communities face is the lack of access to private investment capital for local business and real estate projects.
To help community investors and developers overcome this hurdle, the New Markets Tax Credit Program was created by Congress and is administered by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund.
This program helps mission-driven lenders like Capital Impact attract private investment capital to low-income communities by providing individual and corporate investors a federal tax credit in exchange for making investments in businesses or economic development projects. This incentive bolsters our ability to provide loans to projects delivering social impact in low-income communities across the country.
To date, Capital Impact has used the New Markets Tax Credit program to deliver nearly $500 million in financing to projects that increased access to quality health care and education, healthy food, affordable housing, business cooperatives, and independent aging programs. In turn, these projects have helped stabilize underserved communities by creating thousands of jobs and millions of square feet of office and retail space.We invite you to speak with our team to learn how we can utilize New Market Tax Credits to finance your project in underserved communities.
- Specifically designed to finance projects in distressed communities
- Flexible financing supports a variety of projects including health centers, charter schools, healthy food retailers, mixed-use development, and facilities that allow seniors to age in their communities.
- Encourages private investment that enables multi-million-dollar financing deals
- Supports affordable loans with terms and conditions more favorable than the market typically offers. Terms can include interest only payments, high loan-to-value ratios, and equity infusions into the project.
- Investors receive federal tax credits as a result of program participation
Advantages of borrowing through Capital Impact Partners:
- Nearly two decades of experience structuring NMTC transactions
- More than thirty years of experience in lending to projects in underserved communities. We recognize the special dynamics of lending in these communities and can help you get the most complicated transactions done
- Mission-driven organization committed to partnering with borrowers to ensure good projects that deliver social impact get funded
- Can serve as a single loan source, eliminating need for borrower to secure many layers of capital that can be time consuming and difficult to assemble.
- Ability to offer a variety of financing options under terms not available through traditional financial institutions.
HOW THE NEW MARKETS TAX CREDIT PROGRAM WORKS