MoFi’s offices will be closed on Monday, July 22nd - Wednesday, July 24th for a staff event. We look forward to reaching out upon our return on Thursday, July 25th.

Tax Credit Loans

Tax Credit-Enhanced Loans to Strengthen Communities

New Markets Tax Credits: How They Work

The New Markets Tax Credit (NMTC) program provides business, developers, and non-profits with capital at very favorable terms to help spur investment in economically distressed areas. MoFi works with investors to turn the credits into cash, and then uses that cash to fund catalytic development projects that create jobs and expand community services for low-income people and places.

NMTC project types can include:

  • Health Care
  • Manufacturing
  • Mixed Use
  • Community Facilities
  • Commercial Developments
  • Hospitality

Funding provided through this program works with equity investments and debt financing to create the most flexible capital stack available today. This innovative financing also ensures that important projects receive the capital they need to get to the finish line.

What does this mean in plain English? A qualifying project can receive 18–23% of the financing it needs in the form of a very low interest loan that, ultimately, can be forgiven and would not have to be repaid.

Criteria for NMTC projects:

  • (1) Project is in a qualifying census tract, OR (2) Project will mainly hire or serve low-income people
  • Project is over $5 million in total project costs
  • No more than 80% of the Project’s ongoing revenue will come from housing rental income
  • Project can demonstrate it needs NMTC financing assistance
  • Project will benefit the community

Please contact us to learn more and find out if your project might qualify for NMTC.

Capitol Distributing, Inc., Caldwell ID

Tax Credit Lending

Capitol Distributing, Inc.

New Markets Tax Credits helped this grocery distributor build a new facility, expand its market, and create over 100 new jobs. The project anchored a targeted development zone outside Boise, Idaho, helping to start on economic renaissance of a long-underserved area.