Can extisiting business apply for new market tax credit loan

## Can Existing Businesses Apply for New Market Tax Credit Loans?

**Yes, existing businesses can apply for New Market Tax Credit (NMTC) loans.** The NMTC program is a federal tax incentive program that provides tax credits to investors who invest in businesses and projects located in low-income communities. The NMTC program is designed to spur economic development and job creation in these communities.

To be eligible for an NMTC loan, a business must meet the following criteria:

* Be a for-profit business
* Be located in a low-income community
* Have a project that will create or retain jobs
* Be able to demonstrate the ability to repay the loan

**Existing businesses that meet these criteria can apply for an NMTC loan through a participating Community Development Entity (CDE).** CDEs are non-profit organizations that are certified by the U.S. Department of the Treasury to administer NMTC loans.

The NMTC loan application process is competitive. CDEs typically receive more applications for NMTC loans than they have funds available. As a result, it is important for businesses to submit a strong application that demonstrates the project’s potential to create or retain jobs and stimulate economic development in the low-income community.

**If a business is awarded an NMTC loan, the business will receive a tax credit equal to 39% of the loan amount over a seven-year period.** The tax credit can be used to offset the business’s federal income tax liability.

**The NMTC program has been successful in spurring economic development and job creation in low-income communities.** Since the program’s inception in 2000, NMTC loans have helped to create or retain over 1 million jobs and have leveraged over $100 billion in private investment in low-income communities.

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**If you are an existing business located in a low-income community, you may be eligible for an NMTC loan.** To learn more about the NMTC program and how to apply for a loan, please contact a participating CDE.

## Benefits of NMTC Loans for Existing Businesses

There are a number of benefits to NMTC loans for existing businesses, including:

* **Lower cost of capital:** NMTC loans offer a below-market interest rate, which can reduce the cost of capital for businesses.
* **Tax credits:** Businesses that receive NMTC loans can receive a tax credit equal to 39% of the loan amount over a seven-year period.
* **Flexible financing:** NMTC loans can be used for a variety of purposes, including working capital, equipment purchases, and real estate development.
* **Job creation and retention:** NMTC loans can help businesses to create or retain jobs in low-income communities.
* **Economic development:** NMTC loans can help to spur economic development in low-income communities by attracting new businesses and investment.

## How to Apply for an NMTC Loan

To apply for an NMTC loan, businesses must submit an application to a participating CDE. The application should include the following information:

* A description of the business and its project
* The amount of financing requested
* The proposed use of the financing
* The business’s financial statements
* A market analysis
* A job creation plan

The CDE will review the application and make a decision on whether to approve the loan. If the loan is approved, the business will receive a loan agreement and a tax credit certificate.

## Conclusion

The NMTC program is a valuable resource for existing businesses located in low-income communities. NMTC loans can provide businesses with a lower cost of capital, tax credits, and flexible financing. These benefits can help businesses to create or retain jobs, spur economic development, and improve the quality of life in low-income communities.

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If you are an existing business located in a low-income community, you may be eligible for an NMTC loan. To learn more about the NMTC program and how to apply for a loan, please contact a participating CDE.

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