New Market Tax Credit / Ownership + Opportunity Fund Loans

New Market Tax Credit / Ownership + Opportunity Fund Loans 

At Nokomis Legal, I understand the critical role that financing plays in the success and growth of your business. Two powerful tools that can help businesses, especially in underserved communities, are the New Market Tax Credit (NMTC) program and Ownership & Opportunity Fund Loans. These financial instruments provide significant benefits, and I am here to guide you through the complexities involved in leveraging them for your business. 

New Market Tax Credit (NMTC) 

The New Market Tax Credit program is designed to stimulate investment in low-income communities by providing tax credits to investors. Here’s how I can assist you: 

• Eligibility Assessment: Determining if your business qualifies for the NMTC program. 

• Application Assistance: Helping you prepare and submit a compelling application to secure the tax credits. 

• Investor Coordination: Connecting you with potential investors and facilitating the investment process. 

• Compliance Support: Ensuring that all regulatory and compliance requirements are met to maintain eligibility for the tax credits. 

Benefits of NMTC:  

The New Market Tax Credit (NMTC) program offers numerous advantages that can significantly impact your business and the surrounding community. Here are the key benefits: 

• Attracts Private Investment to Underserved Areas: The NMTC program incentivizes investors to direct their capital into low-income and underserved areas. This influx of private investment can lead to the revitalization of communities that have traditionally lacked access to capital. As a result, local businesses and services can thrive, improving the overall economic health of the area. 

• Provides Substantial Tax Savings to Investors: One of the primary incentives of the NMTC program is the tax credit itself. Investors receive a federal tax credit worth 39% of their total Qualified Equity Investment (QEI) made over a seven-year period. This substantial tax saving encourages more investors to participate, increasing the availability of capital for projects that might otherwise struggle to secure funding. 

• Supports Community Development and Job Creation: Investments facilitated by the NMTC program often lead to the development of vital community resources, such as healthcare facilities, educational institutions, and commercial spaces. These projects not only enhance the quality of life in underserved areas but also create job opportunities for local residents. The resulting economic activity can have a ripple effect, promoting further growth and stability within the community. 

By leveraging the NMTC program, your business can access the financial resources needed to expand and succeed while also contributing to the broader goal of community development. This dual impact makes NMTC a powerful tool for fostering both business growth and social progress. 

Ownership + Opportunity Fund Loans 

Ownership & Opportunity Fund Loans offer flexible financing solutions to support business growth and community development. These loans are particularly beneficial for minority-owned businesses and those in economically disadvantaged areas. Here’s how I can help: 

• Loan Application Guidance: Assisting you in preparing and submitting loan applications to various opportunity funds. 

• Structuring Financing: Advising on the best way to structure your financing to meet your business goals and fund requirements. 

• Negotiation Support: Helping you negotiate favorable terms and conditions with lenders. 

• Ongoing Legal Support: Providing continuous support to ensure compliance with loan terms and to address any legal issues that may arise. 

Benefits of Ownership & Opportunity Fund Loans: 

Ownership & Opportunity Fund Loans are designed to provide significant advantages to businesses, particularly those in underserved or economically disadvantaged areas. Here are the key benefits: 

• Provides Access to Capital That Might Otherwise Be Unavailable: For many businesses, especially those in underserved communities, access to capital can be a significant barrier to growth. Ownership & Opportunity Fund Loans help bridge this gap by offering financial resources that might otherwise be difficult to obtain. This access to funding enables businesses to invest in expansion, equipment, and other critical needs, driving their growth and success. 

• Offers Flexible Terms Tailored to the Needs of Your Business: Unlike traditional loans that often come with rigid terms and conditions, Ownership & Opportunity Fund Loans are designed to be more flexible. These loans can be customized to fit the specific needs and circumstances of your business, whether you need a longer repayment period, lower interest rates, or more lenient collateral requirements. This flexibility ensures that the loan terms are manageable and supportive of your business’s financial health. 

• Supports Long-Term Growth and Sustainability: By providing the necessary capital and favorable terms, Ownership & Opportunity Fund Loans lay the foundation for long-term business growth and sustainability. These loans allow businesses to invest in strategic initiatives, such as expanding operations, entering new markets, or improving infrastructure. As a result, businesses can achieve sustained growth, increased profitability, and a stronger market presence, contributing to their overall stability and success. 

Leveraging Ownership & Opportunity Fund Loans can be a game-changer for businesses looking to overcome financial barriers and achieve lasting growth. By accessing these tailored financial resources, your business can thrive and make a positive impact on the community.