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As a key resource for business owners, Dakota Business Lending wants to help you find the answers you need to reach your goals and fulfill your dreams.
That is why we are answering YOUR questions about all things financing, entrepreneurship, small business, and NMTC.
In this issue, let’s dive into some commonly asked questions and things you should know about the New Markets Tax Credit (NMTC) program…
What NMTC opportunities exist in North Dakota?
Dakota Business Lending is currently the only North Dakota-based financing entity that administers the NMTC program with allocations specifically for use in North Dakota.
Recognizing an opportunity to fill a gap, DBL brought this program to ND in 2021 to support businesses in low-income and distressed areas across this state and further their mission of driving economic growth throughout their footprint.
What is the "but-for" element of NMTC?
An essential component of the NMTC program is the “but for” element. This means that all projects must demonstrate that “‘but for’ the NMTC program, the project would not be possible.”
This criterion ensures that NMTC funding is directed to projects that fill a unique financing gap and that the tax credits are effectively used to generate transformative community impact.
Can the NMTC program be combined with other financing programs?
Absolutely – it is possible for the financing stack to include other programs in addition to NMTC.
In 2024, Dakota Business Lending used the NMTC program in conjunction with both the SBA 504 and Community Impact Loan programs to support Superior Walls in Bismarck, ND. (Read their story here!)
In this case, the NMTC program was used for operating expenses, inventory, and startup costs, while the SBA 504 loan program funded the purchase of real estate and the Community Impact Loan program was used as a bridge loan for the purchase of equipment prior to the funding of the NMTC. This collaborative approach filled multiple financing gaps and enhanced the project’s overall impact.
I have a project in mind that NMTC might be able to help...what are my next steps?
If you have a project you believe could benefit from NMTC funding, it is crucial to reach out to DBL as soon as you can – even if the project is in very early or preliminary stages – to be added to the project pipeline.
NMTC is a highly competitive program, and the project pipeline is continuously revised and reprioritized based on demand, estimated impact, and NMTC allocation available. By contacting our team early, you can ensure your project is considered for potential NMTC support.
Have a question about the NMTC program or other financing programs? Visit our webpage or contact our team so we can help you get the answers you need to take your business to the next level.
