New Markets Tax Credits
CAPITAL YOU NEED TO GROW
The New Markets Tax Credit Program (NMTC Program) helps economically distressed communities attract private capital by providing investors with a Federal tax credit.
Through the NMTC Program, the CDFI Fund allocates tax credit authority to community development entities (CDEs) through a competitive application process. CDEs are financial intermediaries through which private capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. Using the capital from these equity investments, CDEs can make loans and investments to businesses operating in low-income communities on better rates and terms and more flexible features than the market.
PIDC Community Capital, a private, nonprofit subsidiary of PIDC, is a certified CDE that has been awarded $418 million in NMTC allocation between 2007 and 2022.
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PIDC has financing resources to serve the unique needs of businesses, nonprofits, and real estate developers, including those that are BIPOC (Black, Indigenous, and people of color)-, women-, veteran-, immigrant-, disabled-, and LGBTQ+ owned and operated.
Find out how we can connect you to the capital or information you need to grow.
WHO WE SERVE
An applicant must demonstrate that its proposed project will provide long-term benefits to the low-income community. The applicant and/or project must also be located in an eligible census tract. PIDC allocates NMTCs to projects within Philadelphia County.
Generally, business applicants will need at least two years of operations, and developers will need a demonstrated track record of two prior, similar projects to be a good fit.
PIDC has financing resources to serve the unique needs of businesses, nonprofits, and real estate developers, including those that are BIPOC (Black, Indigenous, and people of color), women-, veteran-, immigrant-, disabled-, and LGBTQ+ owned or led.Learn More
WHAT WE FUND
- Property acquisition, if associated with substantial renovation or new construction
- New building construction or substantial renovation
- Machinery & equipment
- Working capital
- Related soft costs
HOW WE WORK
The first step in the PIDC NMTC process is to submit an inquiry to PIDC online.
You will provide initial information about your business and project through our website, and a member of our team will contact you directly to discuss your financing request.
If there is a good fit with PIDC’s NMTC and if PIDC has current NMTC availability, you will complete a full application. The NMTC is a limited resource that is very competitive. Each project is scored for impacts and presented to an advisory board made up of low-income representatives. If approved, you will proceed through a thorough but flexible underwriting and due diligence process. PIDC can assist you in building your team, such as helping to identify consultants, investors, lenders, and additional NMTC allocation to complete your financing stack. The PIDC team will work with you and answer your questions in each step of the process.
If at any point in the process PIDC is not the right match for your financing needs, our team will direct you to partners that may be able to support you with access to capital.
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PIDC invests flexible, affordable capital in growing companies because we know that local businesses create jobs, build wealth for entrepreneurs, and support neighborhood growth. Let us help your business grow