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NMTC
How NMTC Can Help Fund Your Business or Project?
New Markets Tax Credits (NMTC) can help you get flexible, cheaper financing if you’re building or expanding in a low-income area. Here’s what matters to you as a business owner or borrower:
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Better Terms: You get a loan with better terms. NMTC financing usually means lower interest rates, longer repayment terms, and more flexibility than a regular loan.
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Fill Funding Gaps: It helps fill a funding gap. If you don’t have enough money to complete your project, NMTC can provide the extra capital you need.
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Forgivable Debt: Some debt may even be forgiven. After a set period (usually seven years), part of the loan might not have to be repaid. Please use the mapping tool below to see if your project qualifies!
Established as part of the Community Renewal Tax Relief Act of 2000, the New Markets Tax Credit (NMTC) program was created to drive investment into low-income communities. With a goal of generating $15 billion in new private sector investments, the program encourages economic development and growth in underserved areas.
Under the program, qualified Community Development Entities (CDEs) apply to the CDFI Fund for NMTC allocations. These CDEs then secure investments from taxpayers through Qualifying Equity Investments, which are used to finance Qualified Low-Income Community Investments (QLICIs) in Qualified Active Low-Income Businesses (QALICBs) located within low-income communities. Investors are eligible for a tax credit equal to 39% of their equity investment, distributed over seven years—5% annually for the first three years and 6% annually for the following four years.​
The NMTC program empowers CDEs to leverage their local expertise in selecting businesses to support. Eligible businesses typically include small technology firms, urban retail centers, manufacturers, and micro-entrepreneurs. However, residential rental properties do not qualify as QALICBs. Through this program, FNB Community Partners is committed to fostering economic vitality and improving opportunities in the communities we serve.
Find out if your project qualifies!