New Markets Tax Credit (NMTC) Management Services

October 18, 2021
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Deploying & Managing Capital

Receiving NMTC Allocation is a tremendous accomplishment but some of the most challenging work toward maintaining funding lies in successful deployment, thorough compliance and asset management, and meticulous accounting and bookkeeping. TAG is one of the few firms in the industry to provide a full suite of NMTC Management Services to CDEs.

Capital Deployment

The guiding document for an NMTC Allocatee is its NMTC Application. It is the reason the CDE received an Allocation, and faithful adherence to it will be the reason the CDE might receive future Allocations. This document becomes the roadmap in the execution of the CDE’s goals and objectives. It is important to understand all explicit and implied “promises” made in the Application and embed them in the deployment of the Allocation. TAG can help deploy NMTC Allocation by designing and implementing comprehensive deployment policies to include:

  • Borrower application procedures that both help analyze and manage pipeline,
  • Due diligence collection and transaction underwriting,
  • Operating and Advisory Board procedures,
  • NMTC investors solicitation, and
  • Reservation letters, term sheets, borrower performance agreements, and other transaction documents required to lead the CDE through successful transaction closings.


TAG will provide loan servicing, which includes borrower invoicing, monitoring receipt of loan payments, directing and monitoring distributions, notices to borrowers and tracking and monitoring loan amounts.

CDE Compliance and Asset Management

Receiving NMTC funding is a tremendous accomplishment but some of the most challenging work toward maintaining funding over its 7-year life lies in thorough compliance and asset management procedures. TAG’s expertise is built upon the process we created for our affiliate CDEs, The Innovate Fund and Greenville New Markets Opportunity, which collectively have received $327 million of NMTC Allocation. By applying these same compliance and asset management principles to client CDEs, we help ensure successful allocation maintenance. NMTC Compliance and Asset Management Policies and Procedures include:

  • CDE Maintenance,
  • CDFI Fund Reporting Compliance,
  • CDFI Fund Allocation Agreement Compliance,
  • IRS Compliance,
  • QALICB Compliance Review, and
  • Portfolio Review and Risk Rating.

Accounting and Bookkeeping

TAG provides accounting services such as bookkeeping and financial statement preparation and interacts with external accounting resources on all related tax and audit issues.

Policies and Procedures

TAG will create Policies and Procedures tailored to your organization’s needs. We have Policies and Procedures that include: Governance, Deployment, Compliance, Asset Management and Servicing.