Permitted Uses of NMTC Financing
NMTC financing may be used by a “Qualified Business” to:
- acquire, construct, renovate and expand bricks and mortar projects (including those relating to healthcare, education, manufacturing, retail, mixed-use, cultural, community, and renewable energy etc.); and
- finance business and nonprofit operations (such as those in the nature, as described above), including purchasing, modifying or leasing of equipment, and/or funding working capital, inventory, and staffing etc.
However, there are ways to structure the NMTC financing to address any uses that initially do not qualify.
Prohibited Uses of NMTC Financing
NMTC financing may not be used to:
- refinance (with certain exceptions) or prepay existing debt;
- lease to any so-called “Sin-Bussiness,” or
- participate in any abusive transaction.