Qualified projects must be located in a low-income community—that is, where the poverty rate is 20% or higher or the median income is less than 80% of an area’s median income.

Business owners cannot apply directly to the NMTC program. However, partnering with an established, qualified institution with years of NMTC expertise and experience can be a vital step to accessing financing.

Most CDEs will ask businesses to provide a project plan with timelines and expected expansion or construction descriptions, as well as financial statements and data about how the project will positively affect the underserved community.

Once an NMTC deal is finalized, financing is typically based on a leverage model that combines equity from investors with other loan sources. This model minimizes the business owner’s out-of-pocket cost while providing a full tax benefit to the investors. Due to the complexity of NMTC regulations, it can be helpful to work with a trusted partner to maintain strict compliance over the seven-year period as well.

Because NMTC funding is competitive and complex, business owners benefit from working with an experienced Community Development Entity.

Truist is active in the NMTC program, having partnered with Food City, Grady Health System, Boys & Girls Clubs of Lanier, Columbus Tech, and many other organizations,^{Disclosure 4, Disclosure 5} and has been entrusted with more than $750 million in allocation authority.^{Disclosure 1}

Truist can coordinate with external partners, such as financing and legal teams, and leverage internal experts on the NMTC program, not-for-profit banking, and government banking to help business owners navigate the NMTC experience.