New Markets Tax Credits

 

Scarlet Oak Connects Clients and Communities to Capital

Program Overview

 

The New Markets Tax Credit program is a powerful financing tool administrated by the United States Department of the Treasury to facilitate private capital investments that generate employment and community benefits for low-income communities and persons. Since 2002, the program has helped finance more than $50 billion of projects in low-income communities throughout America. Scarlet Oak Capital is currently engaged in more than $150 million of real estate development projects primarily in the Midwest and Southeast.

NMTC Benefits

 

Procuring NMTCs is a competitive process reserved for real estate projects with the right impacts and qualifications. Intended to be an upfront “gap filler,” NMTCs can take a project from 75% financed to 100%. For example, a $20 million project can receive up to $5 million in NMTC benefit.

Qualifications

 

Typical NMTC projects range from $4 million to more than $50 million. They can be located in any U.S. state or territory. For the right business or developer (either for-profit or non-profit), it provides an unmatched economic benefit. Strong candidates have impressive economic, social, minority and/or environmental impacts:

  • Economic - job creation, job training, catalytic real estate development or affordable housing

  • Social - healthcare, education, or community facilities

  • Minority - minority ownership, employment, people served, developers, contractors, etc.

  • Environmental - renewable energy and green manufacturing 

Process

 

Scarlet Oak is typically engaged 6-24 months prior to the expected financial closing. Securing New Markets Tax Credits should be done in conjunction with other development and fundraising efforts. A project cannot close NMTCs until the capital stack, plans and budget have been finalized.

Your NMTC Consultant’s Role

 

Scarlet Oak Capital tackles some of the most complex and impactful development projects, guiding our clients through the nuances of New Markets Tax Credits and often times their senior debt financing. We help companies, organizations, and communities maximize their growth potential. Doing so in a timely and seamless manner increases a project's viability and profitability within an extremely competitive program.