New Market Tax Credit

The New Market Tax Credit (NMTC) program is aimed at stimulating private investment in low-income communities. The program is a first of its kind tax credit to investors who make qualified equity investments in privately managed investment vehicles. By making an equity investment in an eligible "community development entity" (CDE), investors can receive tax credits worth more than 30 percent of the amount invested.

New Market Tax Credit Loan Specifics
Areas Served	No Geographical Boundaries
Max/Min Loan Amount	Generally $50,000 - $2,000,000
Terms	Up to 25 years (fixed interest rate for 7 years)
Eligibility	For profit business Must be a Qualified Low Income Business Must be located in Qualified Low Income Census Tract Proceeds can be used for real estate acquisition and/or construction, purchase of machinery and equipment, and working capital Must have private sector lender commitment of up to 50% of the project