New Markets Tax Credit Program
Established in 2000 by Congress, the New Markets Tax Credit Program ("NMTC Program") attracts private capital into low-income communities by permitting investors to receive a tax credit against their Federal income tax liability in exchange for making equity investments in specialized financial intermediaries known as Community Development Entities ("CDEs") and Community Development Financial Institutions ("CDFIs"). Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers in these communities. The NMTC Program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies.
As a CDE and an active participant in this program, Greenline leverages private investment and its subsidized cost of capital to provide debt financing that is more favorable and flexible as it relates to pricing, security, amortization, etc., compared to other traditional capital providers.
Borrower use of proceeds typically include:
- Growth capital and general working capital
- Acquisitions or expansion into new markets
- Equipment purchases
- All Borrowers must be headquartered and have significant operations in a low-income census tract, which is defined as having income of 80% or less of area media income ("AMI") or a poverty rate greater than 20%. Please check your eligibility via the NMTC Mapping Tool. If you have any questions, please do not hesitate to Contact Us
- Additionally, Borrowers will have one or more of the following characteristics: (1) Minority or women ownership, (2) Beneficial environmental impact, (3) Living-wage jobs, (4) Meaningful employee benefits (Health Insurance, 401(k), Employee Ownership, etc.), (5) Employee training programs (especially for advancement from unskilled to skilled positions), (6) Local community hiring preferences, and (7) Other measurable and positive social and/or environmental impact
- Capable of generating positive EBITDA at the time of investment
- Be able to create and/or retain jobs through NMTC financing
- Industry agnostic with the exception of businesses involved in mining, fossil fuel extraction, gambling, alcohol, tobacco or marijuana, and farming