How Can I Finance Projects to Build Stronger
Communities for the Future?
The New Markets Tax Credit (NMTC) program provides a federal subsidy of about 20% for projects that create jobs or deliver vital goods and services in low-income communities.
Using a unique public-private partnership among the U.S. Department of Treasury (Treasury) private organizations called Community Development Entities (CDEs) and investors seeking to offset federal tax liability, Treasury authorizes CDEs to sell credits to investors. In turn, CDEs use the capital raised to provide accessible and flexible financing to projects located in census tracts with high poverty rates and/or low median family incomes.
CDEs invest in a wide range of projects through the NMTC program, including commercial real estate projects, operating businesses, or community facilities, all with the goal of creating positive community impact. Often, these projects are unable to find the necessary capital from traditional sources.
Tax Advantage Group by Cherry Bekaert (TAG) helps clients successfully navigate and secure financing for their NMTC projects and has participated in $1.9 billion of funding in NMTC across a wide range of industries.
Securing funding through the NMTC program is a highly competitive process, and we are actively involved every step of the way. That means taking the time to truly understand your capital needs before engaging with CDEs and NMTC investors.
Drawing upon our strong relationships with an extensive network of CDEs and tax credit investors, our professionals work closely with you to showcase the mission of your project to the partners that are most aligned with your project’s expected community impacts. This helps you get the best financing solutions to achieve your objectives.
Where appropriate, we can also assist in identifying and closing on investment from other tax-advantaged solutions, such as state and federal historic tax credits (HTC), Opportunity Zones and other federal and state incentives.
Our commitment to getting you the best overall package is what sets us apart.
We’ve been involved with NMTCs from day one, and related types of financing programs for decades. If you’re looking for the team that’s best positioned to help you navigate this landscape from start to finish, you’ve found it in TAG by Cherry Bekaert.
Learn more about our additional strategic financing capabilities:
Expanding a Manufacturing Facility
SWISS KRONO built an expansion onto their manufacturing facility with the help of New Markets Tax Credit program in Barnwell, SC. NMTCs played a vital role in financing the expansion with the help of four CDEs. SWISS KRONO will run an apprenticeship program, enhancing the accessibility of quality jobs in the local community.
- NMTC Allocation: $45,250,000
- 272 Direct Jobs Created
- 250 tons Reduced Emissions
Improving a Medical Facility
Tippah County Hospital
Tippah County Hospital built and expanded their facility, building a first class CAH with enhanced basic and emergency services in Ripley, MS. Four CDEs funded $25.5 million of NMTC Allocation to the Tippah County Hospital.
- NMTC Allocation: $25,500,000
- 278 Direct Jobs Created
- 13,136 LIC Residents Served
Developing Grocery, Retail & Affordable Housing
100 Prince is a mixed-use development that provides grocery and retail space and affordable housing to Athens, GA. Without the NMTC Allocation, neither the grocery nor the affordable units would be possible in this project.
- NMTC Allocation: $17,500,000
- 78 Direct Jobs
- 10 Affordable Housing Units
- 54,074 SF Urban Grocery Store
Extending Health & Wellness
SE Raleigh YMCA
SE Raleigh YMCA improved the facility’s education, health and wellness through New Market Tax Credits. The SE Raleigh YMCA center provides local residents access to improved programming and a state-of-the-art elementary school for students through the YMCA’s leased space.
- NMTC Allocation: $21,000,000
- 66 Direct Jobs
- 63,234 SF Recreation Facility
TAG’s Consulting services are positioned to maximize opportunities, close faster, and generate positive outcomes for local communities. From kick-off to closing, our three-phase approach typically lasts between 12 and 24 months and is designed to support your NMTC journey every step of the way.
“We are an organization that helps folks access New Market Tax Credit capital—whether that’s through New Market Tax credit allocations, applications, placement and deployment or assisting organizations with compliance and asset management functions.” ”
– Peter Byford, Director, TAG by Cherry Bekaert
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