New Markets Tax Credits can be a valuable source of capital for businesses operating in distressed or rural communities.
If your business qualifies, you need an expert to navigate the complexities of NMTC-financed loans.
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Access capital from multiple sources
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Structure a forward-looking loan
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Minimize transaction fees
Get back to your day job.
Many businesses fail to execute a growth strategy because they lack the credit, cash flow, collateral or history to secure a bank loan. The New Markets Tax Credit (NMTC) program offers an effective, targeted and cost-efficient way for businesses located in a distressed or rural community to overcome financing obstacles to access the capital they need. The problem is that NMTCs are a complex structured finance product that require extensive experience and expertise.
We work with business owners to structure a favorable loan; negotiate; assist with the closing process; and position, budget and market the business’ specific capital needs to CDEs.
Here’s How We Do It:
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Confirm Business Eligibility
The NMTC Program provides an incentive for investment in “Low-Income Communities” (LICs), which are census tracts that meet certain poverty rate and population guidelines. Enter your business address here to confirm your eligibility.
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Connect with CDEs that have Allocation
NMTCs are awarded to certified financial intermediaries called Community Development Entities (CDEs), not to individuals or businesses. Sanders connects qualified businesses with CDEs that have available allocation.
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Access Capital From Multiple Sources
Sanders’ expertise is structuring sophisticated capital stacks that may include pairing NMTCs with SBA and USDA loans, historic rehabilitation tax credits, and other tax incentives.
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Structure a Forward-Looking Loan
NMTCs can create unnecessary restrictions for a business if not structured properly. Sanders excels at structuring loans that minimize risk and maximize future growth potential.
Sanders partners with attorneys, accountants and lenders to create efficiencies that reduce legal and transaction fees. Our expertise, however, does not eliminate the need for legal and accounting representation.