Services

National New Markets Fund (NNMF) uses its New Markets Tax Credit (NMTC) Allocation to make investments into catalytic real estate development projects located within qualifying low-income census tracts throughout the nation. NNMF provides financing to projects with demonstrable community impacts, such as job creation and retention, wealth creation, wage increases, and provision of essential community services such as healthcare and childcare. NNMF structures each of its NMTC investments to provide the maximum financial benefit to the project and to the developer. NNMF´s investments may be structured to have the following characteristics:

• Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt)
• Subordinated debt
• Below market interest rates
• Lower than standard origination fees
• A longer than standard period of interest only loan payments
• Higher than standard loan-to-value ratio
• A longer than standard amortization period
• More flexible borrower credit standards
• Nontraditional forms of collateral
• Lower than standard debt service coverage ratio
• Loan loss reserve requirements that are less than standard

Alternative Funding Sources:

NNMF specializes in helping developers identify and access alternative project finance mechanisms, such as government and foundation grants and below market loans. These sources of financing help high-impact projects move forward. NNMF will also help developers access attractive market rate debt and will leverage its strong relationships with many small- to mid-size local banks and large multinational lending institutions.

Sustainability Consulting:

Projects which receive NMTC financing from NNMF are eligible for a no cost sustainability review and technical assistance from a national leading real estate sustainability consulting and building management firm.