New Markets Tax Credit Program Rural Application Round

Application dates: August 1 – September 16, 2024

NMFA announces Round 33 of its New Markets Tax Credit Program through Finance New Mexico. Businesses with projects in rural New Mexico may request up to $7 million (minimum of $5 million) in allocation from the NMTC in this current round. This round is open to businesses with projects in federally designated rural census tracts.

To learn more about the program, the application process, and how to submit a competitive application, please join us for a virtual one-hour webinar on Tuesday, August 6 at 11 am. The webinar will be held via Zoom.

NMTC Application Webinar
Tuesday, August 6, 2024 at 11 am

Webinar Registration

NMTC Rural Application Round Deadline: September 16, 2024

What is the New Markets Tax Credit Program?

Rural Application Round Deadline: September 16, 2024

The New Markets Tax Credit program is a federal program designed to provide businesses in rural or low-income communities with greater access to capital in order to increase job creation and development activities. This particular round is open only to businesses with a project located in rural New Mexico.

Under the New Markets Tax Credit program, Finance New Mexico leverages private capital with funds derived from the sale of tax credits to investors. The incentive to investors is a 39% federal income tax credit earned over seven years for every dollar invested in a qualified low-income community enterprise.

The benefit to New Mexico businesses is low-cost capital, with flexible lending criteria and the potential to convert portions of NMTC loans to equity.

NMTC Round 33 – At a Glance

Eligible applicants: For-profit and nonprofit entities that have a project located in a federally designated rural census tract in New Mexico.

Eligible project types: Building, equipment, and working capital

Financing amount: Minimum of $5 million; Maximum of $7 million

Terms: Loans of up to 40 years at below-market interest rates, with interest-only payments due for the first seven years

Application Process: Applications for Round 33 funding are due September 16. All applications will be reviewed, scored, and prioritized after September 16, 2024.

Other: Successful applicants must secure a primary lender that is willing to leverage its loans through the NMTC program. Funding is offered through quarterly competitive application cycles and is subject to available funding.

What is Finance NM?

In 2007, with the explicit authorization of the New Mexico Legislature, NMFA formed a subsidiary called Finance New Mexico, LLC (FNM) to pursue an allocation of federal tax credits available under the New Markets Tax Credit program.

Since 2007, the CDFI Fund at the US Department of Treasury has awarded FNM seven NMTC allocation awards totaling $346 million.

Through FNM, NMFA has offered 32 competitive application cycles since its inception, including application rounds exclusively for projects located in rural areas. Through these application cycles, Finance New Mexico has closed transactions for 29 projects totaling $329 million, including nine projects totaling $15 million in Small Loan Pool financing.

Federally Designated Rural Census Tracts Included in the Following New Mexico Counties

Catron
Chaves
Cibola
Colfax
Curry
DeBaca
Eddy
Grant
Guadalupe
Harding
Hidalgo
Lea
Lincoln
Los Alamos
Luna
McKinley
Mora
Otero
Quay
Rio Arriba
Roosevelt
San Miguel
Sierra
Socorro
Taos
Torrence (eligible even through designated as a Metropolitan County due to an exception for outlying counties that do not have any urbanized area population)
Union