The purpose of the program is to attract investment capital into economically distressed communities to finance community development projects, stimulate economic growth and create jobs. Projects must be located on a distressed census tract and meet community impact criteria. The project must evidence feasibility and have identified a majority of the financing. A NMTC investment will enhance the terms of the deal. Given the complexity of these deals, NMTC investors generally focus on projects over $5 M.

It All Starts with the Census Tract
Qualifying projects must be located in census tracts with at least 20 percent poverty

OR

Have a median family income below 80 percent of the state or urban median family income.

OR

Below 85 percent if it is a high out-migration rural county, which means there has been 10 percent out migration during the 20-year period ending with the year in which the most recent census was conducted.

Distressed Criteria
In addition, the project must meet one of the following criteria:

• Have poverty rates greater than 30 percent.
• Median family income does not exceed 60 percent of statewide median family income.
• Have unemployment rates at least 1.5 times the national average.

• Rural census tract (any LIC outside the MSAs)
• Federally designated Native American reservations
• Brownfields redevelopment areas
• Federally designated medically underserved areas
• High Out-Migration Rural County
• CDFI Hot Zones
• HUB business
• State or local tax-increment financing districts, enterprise zone programs, state/local programs targeting distressed communities.