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The New Markets Tax Credit (NMTC) program is highly competitive and has several specific eligibility requirements.
It is important that businesses give Dakota Business Lending (DBL) detailed and comprehensive information so it can be determined whether the project meets NMTC eligibility requirements.
Below is a basic overview of the essential elements you’ll need for your application.
Basic Application Checklist
To apply for NMTC, DBL will require some basic information to understand the project, its scope, and its potential eligibility. Items may include:
General Business Information
Business name, location, business type, contact information, etc.
Project Description
Industry, type, costs, timeline, location, total square footage, overall summary, etc.
Community Benefits
Impact/importance to community, jobs created/retained and wages/benefits, community redevelopment/economic impact, additional investments into community/increased goods or services available to low-income populations, etc.
Attachments
Project Narrative, Borrower Pro-Forma Financing or Projections, Appraisals, Project Details/Renderings/Budget, Proposed Construction Schedule, Financial Statements, Community and Economic Impact Details, Support Letters, Term Sheets/Commercial Bank Commitments, etc.
Impact Requirements
Every Community Development Entity (CDE), like DBL, has specific NMTC eligibility impact requirements. DBL’s include:
Located in Low-Income or Distressed Census Tract
The project must be located in a low-income or distressed area as indicated in the NMTC Eligibility Map. (Found here: https://bit.ly/NMTC-ND-2020)
Creation of Quality and Accessible Jobs
The project must create or retain jobs that are quality, meaning they provide good wages and benefits, and accessible, meaning they are available to low-income and limited education populations or individuals.
Increase of Community Goods and/or Services
The project should increase the availability of goods and/or services to low-income areas or populations.
This checklist is a basic guide to help you get started.
For more information, download DBL’s NMTC Project Intake Form on their webpage or contact their team directly.
