Services

New Markets Tax Credit Financing

The Central Valley NMTC, LLC (CVNMTC) uses its New Markets Tax Credit (NMTC) Allocation to make investments into catalytic community development projects located within qualifying low-income census tracts throughout the Central Valley of California.

CVNMTC structures each of its NMTC investments to provide the maximum financial benefit to the project and project Sponsors. CVNMTC’s investments are typically structured to have one or more of the following characteristics:

  • Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt)
  • Subordinated debt
  • Below market interest rates
  • Lower than standard origination fees
  • A longer than standard period of interest only loan payments
  • Higher than standard loan-to-value ratio
  • A longer than standard amortization period
  • More flexible borrower credit standards
  • Nontraditional forms of collateral
  • Lower than standard debt service coverage ratio
  • Loan loss reserve requirements that are less than standard

Alternative Funding Sources:

CVNMTC can also help developers and project sponsors identify and access alternative project finance mechanisms, such as government and foundation grants and below market loans. These sources of financing help high-impact projects move forward. CVNMTC will also help developers access attractive market rate debt and will leverage its strong relationships with many small- to mid-size local banks and large multinational lending institutions to complete project financing.

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Capital for Central Valley Communities