New Markets Tax Credit Overview
The New Markets Tax Credit (NMTC) Program is a federal tax credit program that promotes investment in businesses and community facilities located in low-income communities. In exchange for a qualified equity investment, pursuant to the NMTC program requirements, an investor is provided a tax credit. The proceeds of the equity investment are utilized to fund low-income community businesses located in qualified low-income census tracts. Some examples of projects financed with the assistance of NMTCs include community centers, charter schools, medical facilities, child care facilities, historic live theater venues, supermarkets, business incubator facilities, shopping centers, office buildings for public agency or private commercial use, clean technology research facilities, manufacturing plants, hotels, office parks serving nonprofit organizations, and mixed-use projects.
Civic Community Partners, formerly Civic San Diego Economic Growth and Neighborhood Investment Fund, is a nonprofit corporation that is certified as a Community Development Entity for purposes of applying for an annual NMTC allocation from the United States Department of the Treasury’s Community Development Financial Institutions Fund. To date, Civic Community Partners has received $163 million in tax credit allocation to invest in projects in San Diego’s underserved communities. Our strategy is to provide NMTC loans that enable disadvantaged businesses to grow, create quality jobs, and deliver critical goods and services to San Diego’s low-income residents. We target our activities only to businesses that are aligned with a community development plan and that can generate exceptional impacts for low-income persons. Our primary borrowers are community service businesses and larger commercial goods and services projects. Our financing is dedicated to businesses in San Diego’s highly distressed communities.
Civic Community Partners has utilized its own modest income earned from the NMTC program to provide smaller community-based investments into underserved neighborhoods. These investments support our primary mission by providing loans with reasonable terms and flexible underwriting to businesses, non-profit organizations and community-based organizations who are pursuing projects with direct community impact, particularly in San Diego’s underserved neighborhoods.