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 $518 million in NMTC allocation authority in ten 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.
Emma Chávez, Market Director, Western Region, echavez@liifund.org
