Strategic Partnership Expands NMTC Program to Smaller Projects
on Thursday, January 4, 2018
Iowa Community Development (ICD), a certified Community Development Entity with New Markets Tax Credit (NMTC) allocation and First National Bank of Ames have formed a strategic partnership to expand the NMTC program to support smaller projects in the $1.5-$3 million range. ICD is currently seeking interested parties with projects that fit the NMTC criteria to be considered for this expanded offering.
The NMTC program monetizes the tax credit and helps attract private sector capital and development to communities and rural areas where new investment is needed most—low-income and distressed census tracts. The goal of a NMTC award is to fill a financing gap for transformative projects which bring new job opportunities to qualifying areas. Because of its complex structure, NMTC projects typically have been limited to projects of $5 million or more.
To make this strategic partnership work, ICD has agreed to absorb some of the transaction costs that can be prohibitive of a smaller project, while First National Bank has agreed to purchase the NMTCs and serve as a lender for the unique structure of the program if needed.
To receive NMTC allocation, projects must be transformation in nature, create jobs, and be located in a low-income census tract. The qualifying census tract areas and program details are available at iowacommunitydevelopment.com/nmtc-program/.
If you have an existing company expansion project that fits these criteria, please contact Dan Robeson at Iowa Community Developments or Bruce Nuzum at Iowa Area Development Group to explore options.