New Markets Tax Credits
The New Mexico Finance Authority is pleased to announce the availability of New Markets Tax Credits ("NMTC") loan funds dedicated solely to New Mexico businesses. Loans for up to 25% of your project are available at a low interest rate. NMTC loans are combined with other sources of funding that is secured by the applicant and managed by Finance New Mexico.
The current application cycle opened August 31, 2010
and
The application cycle will close 12:00 midnight on September 28, 2010.
Businesses applying for New Markets Tax Credit funding are required to limit their requests and communication on the project to the written format provided by the NMFA. All information regarding projects submitted by applicants must be directed to the designated NMTC Application Manager in writing, and except as part of any interview that may be conducted as part of the evaluation process, until the Board has approved an application, no employee, agent, or representative of an Applicant shall discuss the project with an officer, member, employee, agent, or representative of the Authority or Finance New Mexico Advisory Board, other than the NMTC Application Manager.
Overview
The Statewide Economic Development Finance Act grants the New Mexico Finance Authority ("NMFA") with broad authority to operate financing programs that stimulate economic development including the power to form, operate, own or co-own qualified Community Development Entities ("CDEs") for the purpose of participating in the New Markets Tax Credit ("NMTC") Program.
In 2006, the NMFA formed Finance New Mexico, LLC ("Finance New Mexico"), a qualified CDE, and in 2007, Finance New Mexico was awarded an allocation of $110 million in New Markets Tax Credits authority which will enable Finance New Mexico to generate capital that it will lend directly to qualified businesses in low-income areas.
The NMFA operates the NMTC program on behalf of Finance New Mexico under the guidance of its adopted New Markets Tax Credit Program Policies and Procedures, Economic Impact Policies and Lending and Credit Policies. The NMTC program was established primarily to provide greater access to financing for new, expanding or relocating businesses in underserved areas across the country. Finance New Mexico and NMFA are targeting the use of allocation of tax credit incentives to add to existing statewide economic development initiatives.
Eligibility
- Loans or investments located in low-income census tracts.
- Development of commercial, industrial and retail real estate projects (including community facilities) in low income census tracts.
- Development of for sale housing in low-income census tracts.
Ineligible activities include:
- Buildings which derive <80% of income from residential units.
- A business which develops or holds intangibles for sale or license (i.e.: Research and Development).
- Businesses that operate a country club, golf course, massage parlor, hot tub facility, suntan facility, racetrack or other gambling facility or liquor store.
- Certain farming businesses.
To Test Address For Eligibility:
Visit the Federal Financial Institutions Examination Council's Geocoding/Mapping System www.ffiec.gov/. Enter your organization's address and click through the relevant buttons to find the percent below the Poverty Rate (should be 20% or greater) and the tract median family income % (should be 80% or less).
Policies and Procedures
For more information about the New Markets Tax Credit loan program, please contact the NMTC application manager at NMTC@NMFA.NET