The New Markets Tax Credit (NMTC) Program page on CBO Financial’s website, located at https://cbofinancial.com/financing/cdfi/new-markets-tax-credit-program/, offers a concise yet insightful overview of how this federal initiative drives economic revitalization in underserved communities. Managed by CBO Financial, a firm with over two decades of experience in community development financing, this page highlights their pivotal role in leveraging the NMTC to fund transformative projects.
The NMTC Program, as detailed on the page, is a federal subsidy designed to inject private capital into low-income areas by incentivizing investors with a 39% tax credit spread over seven years. CBO Financial positions itself as a key player in this ecosystem, channeling these funds through its subsidiary, Community Development Funding, LLC, a certified Community Development Entity (CDE). The page proudly notes that this subsidiary has secured $150 million across six NMTC awards, while the broader team has facilitated over $400 million through 18 additional awards for clients, underscoring their expertise and impact.
CBO Financial explains that the NMTC Program targets high-impact projects—typically ranging from $7 million to $150 million—that struggle to secure traditional funding. By providing flexible, below-market gap financing, often covering up to 25% of project costs, the program makes viable developments that might otherwise falter. The page emphasizes that this financing is “forgivable,” easing the burden on borrowers and amplifying community benefits like job creation and infrastructure improvement.
The process involves investors injecting capital into CDEs like Community Development Funding, LLC, which then deploy these funds as loans or investments into qualified businesses and real estate projects in distressed areas. CBO Financial’s role is to structure these deals, ensuring alignment with the program’s goals of economic upliftment and investor returns, as detailed in their succinct breakdown.
While the page keeps eligibility criteria broad—focusing on projects in economically challenged regions—it highlights CBO Financial’s knack for identifying and supporting initiatives that deliver tangible outcomes. Examples include commercial centers, educational facilities, and health-focused developments, all aimed at revitalizing neighborhoods and boosting local economies. The firm’s success stories, accessible elsewhere on their site, reinforce this narrative.
The page subtly pitches CBO Financial’s seasoned approach, noting their establishment in 1999 and their deep understanding of federal financing mechanisms. Beyond NMTC, they offer a suite of services—project planning, financial modeling, and application assistance—making them a one-stop shop for developers and nonprofits seeking to navigate the complex landscape of community development funding.
Wrapping up, the page invites potential clients to explore free project analysis via a linked contact form, signaling CBO Financial’s readiness to partner with those committed to transforming low-income communities. It’s a streamlined snapshot of a powerful program, delivered with the confidence of a firm that’s mastered its craft.