Intended to stimulate investment and economic growth in low-income urban neighborhoods and rural communities, New Markets Tax Credits (NMTC) financing is a critical source of low-cost capital and equity for health center facility projects—often securing approximately 20-22% of total project costs. Capital Link assists health centers in completing the complex NMTC process, including drafting a proposed NMTC-leveraged model based on capital project needs, identifying one or more Community Development Entity(ies) (CDE) with tax credit allocation, identifying a potential investor to buy the tax credits, providing references to experienced legal firms, and advising the health center through to the closing of the transaction.
To date, FQHCs have benefitted from approximately $1 billion in financing through the NMTC program, 60% of which was raised with Capital Link assistance. As the preeminent national provider of technical assistance to health centers seeking NMTC financing, we have deep experience in structuring and raising capital through this complex financing mechanism. Since the inception of the NMTC Program, we have played a key “linking” role, bringing together health centers, Community Development Entities (CDE) with NMTC allocation, investors and lenders to accomplish highly beneficial transactions for health centers and their communities. We have worked with virtually every CDE and major investor with an interest in financing health center projects—and with scores of lenders, from local banks, large national banks, Community Development Financial Institutions (CDFIs), quasi-public agencies, grant funders, and HRSA. We have never failed to complete an NMTC financing for any of our clients and strive to guide health centers through the process in a streamlined manner.
Together, Capital Link and our lending affliliate Community Health Center Capital Fund serve as the capital financing arm of the health center sector, known for our expertise in leveraging capital for health center projects and managing the technical aspects of NMTC financing.
NMTC Preparation Program:
The NMTC Preparation Program, supported by Capital Link's lending affiliate, Capital Fund, will offer an initial phase of free technical assistance to participating centers. In addition, for a select number of centers, Capital Fund will provide grants to support a portion of the cost of a Capital Link engagement agreement to develop the materials needed for a successful NMTC financing. LEARN MORE HERE >
We have also developed several publications explaining the NMTC Program in detail, how this type of financing works, the qualification criteria, and providing an example of the transaction structure.
Access our NMTC publications here.