• if the total NMTC financing is over $5 million a forgivable loan (at the end of 7 years) equal to approximately 33% of the total NMTC financing, or
• if the total NMTC financing is under $5 million a non-forgivable loan equal to 100% of the NMTC financing (which may mature up to 40 years).
• There are 8 major USDA’s Business Programs which:
  • provide financial backing and technical assistance to stimulate business creation and growth in eligible rural communities (such as loans, loan guarantees and grants to individuals, businesses, cooperatives, farmers, ranchers, and public and nonprofit corporations);
  • are facilitated through partnerships with public and private community based organizations and financial institutions to provide financial assistance, business development, and technical assistance to rural businesses;
  • provide capital, equipment, space, job training, and entrepreneurial skills that can help to start and/or grow businesses; and
  • support the creation and preservation of quality jobs in such rural areas.
• Please click the following link, each of which provides more specific information about the 8 major USDA’s Business Programs which:
  • The NMTC Program Subsidy/forgivable loan is equal to the (x) size of the NMTC   financing    (i.e.,    the    “Qualified Equity Investment”).
  • The other Loan (the “Senior NMTC Loan”) is equal to the (x) NMTC Financing/”Qualified Equity Investment,” less (y) the amount of the forgivable loan.
  • Example:  If the size of the NMTC financing is $10 million and the current market pricing is $0.84, then the NMTC Program Subsidy/forgivable loan is approximately $3.3 million (i.e., $10 million NMTC financing x 39% NMTCs x $0.84). Then, the Senior NMTC Loan is equal to $6.7 million (i.e., $10 million NMTC financing less the $3.3 million NMTC Subsidy/forgivable loan), which is provided by the Borrower’s other available financing and used in the IRS Approved Leverage Structure.

There are 5 major USDA’s Community Facilities Programs which:

• provide direct loans, loan guarantees and grants to develop or improve essential public services and facilities in eligible rural communities;
• increase the competitiveness of such rural communities in attracting and retaining businesses that provide employment and services for their residents;
• can be used to construct, expand or improve facilities that provide health care, education, public safety, and public services (such as fire and rescue stations, village and town halls, health care clinics, hospitals, adult and child care centers, assisted living facilities, rehabilitation centers, public buildings, schools, libraries, and many other community based initiatives); and
• can be used to cover the costs for land acquisition, professional fees, and purchase of equipment.

• Please click the following link, each of which provides more specific information about the 5 major USDA’s Community Facilities Programs which:
  • The NMTC Program Subsidy/forgivable loan is equal to the (x) size of the NMTC   financing    (i.e.,    the    “Qualified Equity Investment”).
  • The other Loan (the “Senior NMTC Loan”) is equal to the (x) NMTC Financing/”Qualified Equity Investment,” less (y) the amount of the forgivable loan.
  • Example:  If the size of the NMTC financing is $10 million and the current market pricing is $0.84, then the NMTC Program Subsidy/forgivable loan is approximately $3.3 million (i.e., $10 million NMTC financing x 39% NMTCs x $0.84). Then, the Senior NMTC Loan is equal to $6.7 million (i.e., $10 million NMTC financing less the $3.3 million NMTC Subsidy/forgivable loan), which is provided by the Borrower’s other available financing and used in the IRS Approved Leverage Structure.