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Borrower Eligibility

The New Markets Tax Credit Program has strict borrower eligibility requirements.  The following types of borrowers may qualify for a NMTC loan:

  • A borrower formed solely to develop or own real estate in a qualifying low-income community, which does not own other real estate or have other significant assets
  • A borrower formed to acquire owner-occupied commercial real estate, when both the landlord and tenant are related parties and qualified borrowers and the tenant is the primary occupant
  • A borrower may qualify if most (i.e., greater than 50%) of its employees and tangible property are located in a qualifying low-income community. A professional services business (e.g., CPAs, doctors, or law firms) located in a low-income community will therefore usually qualify as a borrower

NMTC rules prohibit loans to the following categories of potential borrowers:

  • Apartment buildings
  • Golf courses or country clubs
  • Race tracks or other gambling facilities
  • A store, such as a liquor store, the principal business of which is the sale of alcoholic beverages for consumption off premises (a restaurant that sells alcohol for consumption incidental to the sale of food may qualify)

Contact Us

To learn more about NMTC and to see if you may qualify, click here to contact a NMTC representative.