Program Eligibility
Borrowers must meet the definition of a “Qualified Active Low-Income Community Business” as defined under the NMTC Program guidelines. In addition, investments must be located in census tracts that meet the definition of “higher distress” per NMTC Program guidelines (see definitions below).
ESNMC will target:
- Approximately 50% of its financing activities to borrowers in non-metropolitan (i.e. rural) counties as defined by the CDFI Fund
- Operating businesses seeking growth capital for equipment, inventory, and other growth needs
- Business or non-profit owner-occupied facilities
- Commercial or mixed-use real estate projects
ESNMC will consider, on a case-by-case basis, other investments that may not fit these categories.
Qualifying Your Site for NMTCs
The following information is presented for guidance. Experienced NMTC professionals will help to confirm eligibility. ESNMC will consider qualification as part of an overall evaluation of a potential NMTC investment.
To determine if your site is located in a qualified NMTC census tract, access the CDFI Fund’s website page that helps determine if your location qualifies for NMTCs and is located in a census tract that also meets some criteria/definition of “higher distress”:
Sites located in non-metropolitan (i.e., rural) census tracts must meet the following criteria:
- Median family income: < 80%
- Poverty rate: > 20%
Sites located in metropolitan areas must meet one of the primary criteria listed below or two of the secondary criteria listed below:
Primary criteria for sites located in metropolitan areas include:
- Median family income: < 60%
- Poverty rate: > 30%
- Unemployment rate: > 1.50x the National Average
Secondary criteria for sites located in metropolitan areas include:
- Poverty rate greater than 25%; median family income not exceeding 70%; or unemployment rates at least 1.25 times the national average
- Federally designated Empowerment Zone, Enterprise Community or Renewal Community
- SBA designated HUB Zone, when NMTC financing will support businesses that obtain HUB Zone certification by the SBA
- Federal Brownfield sites as defined under 42 U.S.C. 9601 (39)
- Area encompassed by a HOPE VI redevelopment plan
- Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority
- Areas designated as distressed by the Appalachian Regional Commission of Delta Regional Authority
- Colonias areas as designated by the U.S. Department of Housing and Urban Development
- Federal Opportunity Zones
- Federally designated medically underserved area, when NMTC financing activities will result in the support of health-related services
- State Enterprise Zone, or other similar state/local programs targeted toward economically distressed communities
- Counties for which the Federal Emergency Management Agency has issued a "major disaster declaration" and made a determination that such county is eligible for both "individual and public assistance" provided that initial investment be made within 24 months of the disaster declaration
- Businesses certified by the Department of Commerce as eligible for assistance under the Trade Adjustment Assistance for Firms program
- Businesses located in food deserts under the Healthy Food Financing Initiative definition (USDA-ERS) to the extent NMTC financing will increase access to healthy food
Disqualified Businesses:
- Massage parlor
- Hot tub facility
- Suntan facility
- Country club
- Racetrack or other facility used for gambling
- Store whose principal purpose is the sale of alcoholic beverages for consumption off premises
- Development or holding of intangibles for sale
- Private or commercial golf course
- Certain farming businesses