Project Financing

Cherry Bekaert helps clients successfully navigate and secure financing for their businesses, projects, and investments in low-income communities using New Markets Tax Credits (NMTCs), CDFI loan proceeds, and other credits and incentives.

How Can I Finance Projects To Build Stronger Communities for the Future?

The New Markets Tax Credit (NMTC) program provides a federal subsidy of about 20% for projects that create jobs or deliver vital goods and services in low-income communities.

Using a unique public-private partnership among the U.S. Department of Treasury (Treasury) private organizations called Community Development Entities (CDEs) and investors seeking to offset federal tax liability, the Treasury authorizes CDEs to sell credits to investors. In turn, CDEs use the capital raised to provide accessible and flexible financing to projects located in census tracts with high poverty rates, high unemployment rates or low median family incomes.

CDEs invest in a wide range of projects through the NMTC program, including commercial real estate projects, operating businesses, or community facilities, all with the goal of creating a positive community impact. Often, these projects are unable to find the necessary capital from traditional lending, equity and grant sources.

Cherry Bekaert helps clients successfully navigate and secure financing for their NMTC projects and has participated in more than $2 billion of funding for NMTC investments and other allocation sources across a wide range of industries.

Securing funding through the NMTC program is a highly competitive process, and we are actively involved every step of the way. That means taking the time to truly understand your capital needs before engaging with CDEs and NMTC investors.

Drawing upon our strong relationships with an extensive network of CDEs and tax credit investors, our professionals work closely with you to showcase the mission of your project to the partners that are most aligned with your project’s expected community impacts. This helps you get the best financing solutions to achieve your objectives.

We can also assist in identifying and closing on investment from other tax-advantaged solutions, such as state and federal historic tax credits (HTC), Opportunity Zones and other federal and state incentives.

Webinar

From Strategic Planning to Implementation

Discover impactful community development strategies in this essential webinar. Learn to implement strategic plans and leverage NMTCs effectively. Gain insights on securing funding and maximizing community impact!

Your Guide to Navigating NMTCs

We provide comprehensive support throughout the NMTC finance process, starting with understanding your project's needs and goals and engaging with CDEs that are most likely to invest based on aligning with the CDE’s geographic, asset class and community outcome priorities. We complete forms, create tailored marketing materials, and provide guidance and support until your deal is finalized. Our commitment to finding the best overall package sets us apart and sets your project up for success.

NMTC Project Financing Process

Phase 1

In-Depth Project Research, Analysis and Packaging

We complete a rigorous due diligence process in which our team evaluates your project’s operations, outcomes and financing needs. We then work with you to develop compelling marketing materials designed to capture interest and investment from the most relevant CDEs.

Phase 2

Targeted Marketing and Sales Outreach

We use our knowledge, experience and relationships to determine the CDEs best suited to supporting your project. This process is based on factors like geography, focus area and community impact. We then communicate directly with those CDEs to build a pipeline of engaged potential partners.

Phase 3

Full Project Closing Support

Once we have helped you identify and secure the right CDEs, we assist you throughout the process of closing. This includes supporting you in navigating the different terminology, stakeholders and economic modeling involved. This helps you get the best possible outcome for your project and your community.