At True Mountain Capital, we understand that determining New Markets Tax Credit (NMTC) eligibility can be a complex and time-consuming process. That's why we're excited to introduce our new NMTC Eligibility Mapping Tool, designed to streamline this process and provide you with accurate, up-to-date information at your fingertips.

Why We Created the NMTC Eligibility Mapping Tool

Our mission has always been to support community development and investment in underserved areas. The NMTC Eligibility Tool is a significant step toward that goal. By providing a user-friendly, efficient, and accurate way to check NMTC eligibility, we're making it easier for developers, planners, and investors to bring their projects to fruition.

Key Features of the NMTC Eligibility Mapping Tool

1. User-Friendly Interface

We designed the tool with simplicity in mind. Whether you're a seasoned developer or new to the NMTC program, our intuitive interface ensures you can easily enter information and get the results you need.

2. Comprehensive Data Integration

The tool uses the most recent data from the Community Development Financial Institutions (CDFI) fund and the 2020 US Census American Community Survey (ACS). This ensures that our eligibility assessments are based on the latest information, giving you confidence in the results.

3. Instant Results

Time is of the essence in community development projects. Our tool provides immediate results, so you can quickly determine if your area qualifies for NMTC incentives and move forward with your plans.

4. Detailed Reporting

Transparency and documentation are key in any project. Our tool generates detailed reports that outline the specific criteria and data points used in the eligibility determination. This can be crucial for securing funding and support.

5. Interactive Map Visualization:

Understanding the geographic distribution of NMTC-eligible areas is easier with our interactive map. It visually displays eligible and non-eligible zones, helping you make informed decisions about where to focus your efforts.

How to Use the NMTC Eligibility Mapping Tool

Using our tool is straightforward and efficient. Here’s how you can determine NMTC eligibility for your potential NMTC project:

Step 1: Access the Tool

Visit our website and navigate to the NMTC Eligibility Tool at https://truemountaincapital.com/explore/nmtc/eligibility-tool/.

Press the “Get Started” button on the right.

Step 2: Enter Address Information

Input the address for the area you’re interested in. Just type in the full address to specify the location.

Step 3: Submit the Information

Click the "Check Eligibility" button to submit your information. Our tool will analyze the data and automatically select the matching 2020 census tract used to determine eligibility.

Step 4: Review the Results

The tool will display whether the area is eligible for NMTC incentives. If it is, you will receive a report outlining the demographic and economic factors considered in the determination. This report can be shared with stakeholders or used in your project planning documentation. 

The Benefits of Our NMTC Eligibility Mapping Tool

• Efficiency: Quickly determine NMTC eligibility without the need for complex manual calculations.
• Accuracy: Rely on up-to-date CDFI and ACS data for precise results.
• Accessibility: Our online tool is available 24/7, allowing you to check eligibility at your convenience.
• Clarity: Detailed reports provide transparency into the eligibility determination process, supporting your project’s credibility and planning efforts.

At True Mountain Capital, we’re committed to supporting community development and investment in underserved areas. Our NMTC Eligibility Tool is a powerful resource that simplifies the eligibility determination process and provides detailed, accurate results. We invite you to explore the tool today and see how it can help unlock the potential of NMTC incentives for your next project.  If you have an eligible project, please contact us at True Mountain Capital to help us guide you thru the NMTC funding process.

Thank you for choosing True Mountain Capital as your partner in community development. Together, we can make a difference.

By Jeff Cotton, CEO - True Mountain Capital

Introduction

The New Markets Tax Credit (NMTC) program is a powerful tool for spurring economic development in underserved communities. Understanding the application process is crucial for businesses and organizations aiming to leverage this opportunity. 

What is the NMTC?

Congress established the NMTC program in 2000 to encourage private investment into low-income communities. The New Markets Tax Credit (NMTC) Program is managed by the Community Development Financial Institutions Fund (CDFI Fund), which is part of the U.S. Department of the Treasury. Investors receive tax incentives in exchange for equity investments in Community Development Entities (CDEs), which then invest in qualified businesses and projects. 

The NMTC application process

1. Pre-Application Preparation

Before applying for the NMTC, ensure your project meets the eligibility criteria. You can use the True Mountain Capital NMTC Eligibility Tool to quickly determine this.  Gather essential documents, such as business plans, financial statements, and impact projections. Partnering with a firm like True Mountain Capital is crucial to understanding eligibility and navigating the application process.

1. Information Required for the NMTC Application

Business and Project Details: Describe your business, its mission, and the project for which you seek NMTC funding.

Financial Projections and Statements: Provide detailed financial forecasts, past financial performance, and funding needs.

Community Impact Analysis: Explain how your project will benefit the community, including job creation, services provided, and economic growth.

Governance and Management Information: Outline the qualifications and experience of your leadership team.

Compliance with NMTC Regulations: Demonstrate your understanding of and commitment to NMTC compliance requirements. 

1. The application submission

True Mountain Capital can provide an NMTC “intake” form which will completely itemize the items you need to provide. Complete this form meticulously, ensuring all the information is provided.

The Application Process 

The flow chart below shows the structure and financial entities involved in the NMTC application process.

• CDFI Fund: A subset of the U.S. Treasury that administers the NMTC program, annually awarding $5Bn of NMTC allocation authority to CDEs.
• CDE (Community Development Entity): An organization certified by the CDFI Fund that applies for NMTC allocation and deploys that allocation into NMTC-eligible projects. CDEs receive the Investor’s equity and the Leverage Loan
• Investor: An individual or entity that makes an upfront equity investment into a NMTC-eligible project, in exchange for a 7-year stream of New Markets Tax Credits.
• Leverage Lender: An entity, typically affiliated with the Sponsor, that provides debt (the “Leverage Loan”) into a fund where it can be pooled with an equity investment from the NMTC Investor and ultimately lent to a QALICB to improve property.
• Investment Fund: A special purpose vehicle that (a) pools the capital provided by the leverage lender and the NMTC Investor and (b) funds a Qualified Equity Investment into one or many CDEs.
• QALICB (Qualified Active Low-Income Community Business): A business in a low-income, severely distressed census tract that creates many jobs and/or provides goods and services to the surrounding Low-Income Community

Please note that the CDE and project developer are required to monitor and report the project outcomes to ensure compliance with NMTC program requirements.

The timeline for the NMTC Application and Approval.

The timeline from application submission to final decision can vary, but typically ranges from several months to over a year. Factors influencing the timeline include the application's completeness, the demand for NMTC allocations, and the project's specific details. 

Conclusion

Navigating the NMTC application process requires careful preparation and a thorough understanding of the requirements. By following these steps and working closely with a company like True Mountain Capital, businesses and organizations can successfully leverage NMTC funding to drive community development and economic growth.

Warm regards,

Jeff Cotton
President & CEO
True Mountain Capital, LLC
jcotton@truemountaincapital.com
(901) 347-7276