New Markets Tax Credits

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The New Markets Tax Credit (NMTC) Program promotes economic advancement in distressed communities by encouraging private investment in community development projects. To date, LIIF has received $373 million in NMTC allocation authority in eight consecutive awards. LIIF uses its allocation of NTMCs to support large-scale financing for a range of community facilities that support our mission of poverty alleviation, such as charter schools, nonprofit facilities, health care clinics and transit-oriented developments. See below for LIIF’s NMTC terms.

NMTC Products

Purpose
Mini-permanent financing for the construction or rehabilitation of community development projects. Project needs to be located in a qualified census track.
Type
NMTC allocation and leveraged loan.
Allocation Size
$5-20 million. For larger transactions, LIIF may look to partner with other CDEs.
Loan Term
7 years
Interest Rate
Priced at affordable rates based on the transaction structure.
Repayment
No prepayment allowed.
Collateral
Standard NMTC security requirements. Guarantees may be required.
Loan-to-Value
Product can deliver proceeds of up to 115% of the appraised value.

Downloads
NMTC Term Sheet

Purpose
JPMorgan Chase selected LIIF as one of its CDFI partners for an initiative to support NMTC transactions for the construction or rehabilitation of high-performing charter schools. Project needs to be located in a qualified census track.
Type
NMTC allocation and subordinated leveraged loan.
Allocation Size
$5-20 million
Loan Term
7 years
Interest Rate
Priced at affordable rates based on the transaction structure.
Repayment
No prepayment allowed.
Collateral
Standard NMTC security requirements. Guarantees may be required.
Loan-to-Value
Product can deliver proceeds of up to 115% of the appraised value.

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