NMTC: NEW MARKETS TAX CREDIT
FCLF’s New Markets Tax Credit (NMTC) Program can finance construction or major renovation of real estate in qualified distressed census tracts, with tax credits provided to the investor through the Federal NMTC program.
The NMTC Program was created by the Federal Government in 2000 to encourage investment and jobs creation in very low-income communities.
Florida Community Loan Fund has participated in the NMTC Program since 2003, and has been awarded $451 million in allocations from the U.S. Treasury's CDFI Fund and $11 million in awards from the State of Florida's New Markets Development Program.
At FCLF, our NMTC program focuses on projects that align with our mission of helping underserved citizens throughout the state of Florida.
FCLF's NMTC focus is on community facilities that place a priority on serving low-income clients or provide dedicated social or educational services to low-income or at-risk clients. This could include:
- Community Health Centers
- Homeless Facilities
- Domestic Violence Shelters
- Behavioral Health Centers
- Youth Services Facilities
- Food Banks
Does NMTC fit your project? Some of the characteristics of NMTC financing are:
- Monthly payments may be lower than for similar size conventional loans as a result of interest-only payments.
- Effective rates are often below market for commercial loans of this type.
- Higher LTVs may result from the 2-loan structure, with the "B" loan often being treated as up-front substitute for a portion of equity required by lenders.
- Option of equity conversion at the end of the 7-year term.
Meet our Borrowers through the NMTC Program and see the impact we have had in qualified distressed census tracts.
If you have more questions or to find out if your project meets the NMTC Program guidelines, Contact Us.