The New Market Tax Credit (NMTC) program is a federal economic development initiative enacted in December 2000, and administered by the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund operates under the U.S. Treasury Department. The goal of he NMTC program is to encourage private investment in low income communities across the entire United States.

Federal tax credits are given to investors who put up the money to fund loads. The tax credit translates into very attractive (below market) interest rates to the business borrower along with liberal underwriting guidelines. Low income communities are identified via census tract data that measures the tract's median income as a percentage of the MSA median income and the tract's percentage of population that is below the federal poverty level. Business of companies that locate or expand in these targeted communities can be eligible for NMTC financing options.

The Saint Paul Port Authority is able to offer an easy to use version of the NMTC load program to qualifying businesses in qualifying communities. Commercial real estate financing is available under the following general guidelines:

1. Owner occupied - no investment real estate
   
2. Permanent financing take-out for construction lenders
3. Loan-to-value ratios as high as 90%
4. First mortgage loads available - does not require bank participation
5. Full payout 25 year amortizations and commitments - no balloon payments
6. Fixed rate pricing for the first 7 years at low rates
7. No difficult applications to fill out - we walk you through it start to finish
8. One phone call can determine eligibility and start the process

The NMTC real estate financing program can be a great economic development tool to help attract and retain growing businesses into targeted communities. Industrial Development Districts and Brownfields are also open to this innovative financing program. An equipment load version of the NMTC program, a 7-year full payout, is also available.