New Markets Tax Credits Preparation Program
Through the NMTC Preparation Program, Capital Fund will support an initial phase of free technical assistance to participating centers offered through its affiliate, Capital Link. In addition, for a select number of centers, Capital Fund will provide grants to support a portion of the cost of a Capital Link engagement agreement to develop the materials needed for a successful NMTC financing.
Preliminary Assistance: Initial Capital Link assistance—entirely supported by Capital Fund and free to program participants—will include:
- Group webinar to review and explain the NMTC program and financing process
- Individual discussions with management about the NMTC program
- Assessment of project eligibility
- Development of a preliminary transaction structure and diagram
- Development of a project timeline to identify key milestones in alignment with expected NMTC allocation cycles
Direct Grant Support: Following the Preliminary Assistance phase, Capital Fund will select 5 – 7 centers for direct grant support to defray a portion of the cost of preparing for an NMTC financing.
Common components supported by grant funding may include:
- A transaction summary, detailing the proposed project and its expected community benefits;
- A full business plan and 7-year financial projections;
- NMTC structuring, including securing leverage debt (if needed);
- Guidance and assistance throughout the closing process.
This session kicks off the initial phase of the NMTC Preparation Program. Staff from Capital Fund and Capital Link review and explain the NMTC program and financing process.