New Markets Tax Credit Program

Rocky Mount, North Carolina
Rocky Mount, North Carolina
• The City of Rocky Mount, North Carolina set forth a bold vision to revitalize and transform downtown Rocky Mount. At the center of this vision was one catalytic project: the construction of the Downtown Epicenter for Health, Wellness and Sports. This facility will house a 5,000-seat event center and 15,000 square feet of space to be used for community meetings, office, retail, recreation and educational space. • Greenline’s NMTC loan will be used to facilitate the construction of this recreational facility in a severely distressed census tract.
Hammond's Candies | Denver, CO
Hammond's Candies | Denver, CO
• Headquartered in Denver, CO and with a location in Norfolk, VA, Hammond’s Candies is a 100+ year old manufacturer of candies. The company manufactures peanut candy, candy canes, lollipops, marshmallows, chocolate, caramel and much more. • The company will use Greenline’s SBCF loan to refinance its existing debt, expand its marketing campaign, and facilitate working capital requirements. • Hammond’s Candies is located in a severely distressed census tract and with Greenline’s loan, the company will be able to create an estimated 75 new jobs.
XL Fleet | Boston, MA
XL Fleet | Boston, MA
• Founded in 2009 in Boston, MA, XL Fleet is a transformative green energy company that manufactures a hybrid-electric powertrain package for Class 2-6 commercial and municipal vehicles. The company’s technology has proven benefits including up to 25-50% MPG improvement and 20-33% reduced CO2 emissions in vehicles. • The company will use Greenline’s NMTC investment for growth capital purposes and to build a new facility. • XL Fleet is located in a severely distressed census tract and with Greenline’s NMTC investment, the company will be able to create over 100 jobs directly accessible to the low-income community.
The Swanson Group | Springfield, OR (Photo Credit - Andy Nelson/The Register-Guard)
The Swanson Group | Springfield, OR (Photo Credit - Andy Nelson/The Register-Guard)
• Based in Springfield, Oregon, The Swanson Group ("Swanson") is a leading, national forest products company. The company manufactures, sells and distributes construction grade wood products, including (i) dimension lumber, (ii) studs, and (iii) plywood, through multiple channels to customers in the industrial, homebuilding, commercial and retail markets. • In 2014, Swanson’s plywood and veneer plant in Springfield was destroyed by a fire resulting in 250 displaced workers. Along with its business insurance proceeds, the company used Greenline’s NMTC investment to help rebuild a new facility and purchase updated equipment. • Swanson is located in a severely distressed census tract and with Greenline’s NMTC investment, the company was able to rehire its original employees, as well as additional employees.

Program Overview

Established in 2000 by Congress, the New Markets Tax Credit Program ("NMTC Program") attracts private capital into low-income communities by permitting investors to receive a tax credit against their Federal income tax liability in exchange for making equity investments in specialized financial intermediaries known as Community Development Entities ("CDEs") and Community Development Financial Institutions ("CDFIs").  Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers in these communities.  The NMTC Program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies.

 As a CDE and an active participant in this program, Greenline leverages private investment and its subsidized cost of capital to provide debt financing that is more favorable and flexible as it relates to pricing, security, amortization, etc., compared to other traditional capital providers.  

Borrower use of proceeds typically include:

  • Growth capital and general working capital
  • Acquisitions or expansion into new markets
  • Equipment purchases
  • Refinancings
 

Investment Criteria

  • All Borrowers must be headquartered and have significant operations in a low-income census tract, which is defined as having income of 80% or less of area media income ("AMI") or a poverty rate greater than 20%.  Please check your eligibility via the NMTC Mapping Tool.  If you have any questions, please do not hesitate to Contact Us
  • Additionally, Borrowers will have one or more of the following characteristics: (1) Minority or women ownership, (2) Beneficial environmental impact, (3) Living-wage jobs, (4) Meaningful employee benefits (Health Insurance, 401(k), Employee Ownership, etc.), (5) Employee training programs (especially for advancement from unskilled to skilled positions), (6) Local community hiring preferences, and (7) Other measurable and positive social and/or environmental impact
  • Capable of generating positive EBITDA at the time of investment
  • Be able to create and/or retain jobs through NMTC financing
  • Industry agnostic with the exception of businesses involved in mining, fossil fuel extraction, gambling, alcohol, tobacco or marijuana, and farming

 

 

 

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