New Markets Tax Credit Program

Parties
  • Leverage Lender
  • Investor
  • Advent Community Development Fund
  • Real Estate or Operating Business (including non-profit)
  
Program Description & Purpose Advent Community Development Fund provides below-market financing at 50%~95% of project costs for the acquisitions, development and operations of healthcare, assisted living and other job creating businesses located in qualifying low income census tracts.

Advent is certified by the U.S. Department of Treasury New Markets Tax Credit Program (NMTC), to attract private capital to underserved low income communities by permitting individual and corporate investors to receive a tax credits against their Federal income tax liabilities in exchange for making equity investments through the Advent Community Development Fund. Advent serves as an intermediary by investing or lending these funds at below market rates during an interest-only seven (7) year period.

As of 2106, the NMTC program has generated more than $75 billion in total capital investment through public-private partnerships since the first credits were allocated in 2003. Advent is seeking up to $100MM in NMTC allocation in 2017.

  
Qualifications Real Estate or Operating Business (including non-profit) that is a Qualified Active Low-Income Community Business (QALICB):

  • Located in Qualified Census Tract – www.advent.link/NMTCMap.
  • >50% of income is derived business located in the QCT.
  • Serves the residents in the QCT.
  • Create temporary (i.e. construction) or permanent jobs in the QCT.
  
Value Proposition
  • Provides gap financing up to 95% of project costs.
  • Low cost, below-market capital provided during 7-year investment period.
  • No principal repayment during 7-year investment period (interest-only).
  
Key Terms
  • Project Size (Total Capital): $10MM+ (varies)
  • Leverage: 50-95%
  • Rate: Below-Market (varies)
  • Investment Period: 7 years
  
Exit Strategy Repay principal or acquire Investor’s interest.

 

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