Funding the Future with NMTC
As a Community Development Financial Institution (CDFI) devoted to financial and lending equity, Sunrise Banks has been participating in the federal New Markets Tax Credit (NMTC) program since 2009. While membership is now held by approximately 100 banks in the U.S., Sunrise Banks was the first CDFI bank in Minnesota.
Projects using NMTCs often involve the acquisition, rehabilitation or construction of real estate or the expansion of operating businesses sparking economic growth in low-income communities. Projects using this program have sparked economic growth throughout the Twin Cities since the program’s inception in 2001.
The NMTC program drives capital to economically distressed communities and in turn stimulates economic growth and revitalization for those same communities. It helps attract investment capital and provides small businesses, nonprofits and developers access to better financing rates and terms than typically available in traditional lending programs.
Ready to get started?
To learn more or to apply for NMTC financing, contact us. Applicants should email or call:
Mary Stoick, Senior Vice President, Director of Tax Credit Lending
(651) 927-1611
Mary.Stoick@SunriseBanks.com
Or fill out the form below:
Benefits of New Markets Tax Credit Financing
- Access to Affordable Capital
The potential for flexible terms – including below market interest rates, lower down payment requirements, interest-only payments, and the opportunity for principal reduction at maturity – making it more affordable for borrowers compared to traditional loans leading to increased project feasibility.
- Maximized Funding
NMTC can be combined with other forms of financing, enabling borrowers to leverage additional resources and maximize funding for their projects.
- Community Development Focus
Borrowers can align their projects with community needs, attracting further support from local stakeholders. Long-term Investment: NMTC projects often have a longer time horizon, allowing borrowers to stabilize their businesses and foster sustainable growth.
- Increased Visibility and Support
Participating in NMTC projects can enhance a borrower’s reputation and visibility within the community, potentially attracting additional partnerships and investments.
- Job Creation and Economic Growth
By accessing NMTC financing, borrowers contribute to job creation and local economic development, which can lead to a stronger business environment.
- Support from Sunrise Banks
Borrowers receive guidance and support from us, which can help navigate the complexities of project financing and implementation.
How do NMTC help your community?
The CDFI Fund, a branch of the US Treasury Department, awards NMTC allocation authority to Community Development Entities (CDEs) based on applications displaying the CDE’s demonstrated need in the community they serve and a history of community involvement. This allocation in turn helps finance projects across the US need additional low-cost capital. Here are a few examples of our CDFI NMTC lending in action:
- Former NBA player Devean George is transforming a North Minneapolis warehouse into a modular housing factory to address the affordable housing crisis and create over 300 local jobs. The project uses assembly-line techniques to build housing units efficiently and affordably, with substantial support from Sunrise Banks and public-private partnerships. The initiative partners with local nonprofits to train and employ underrepresented workers, aiming to boost economic growth and community well-being.
- The Minneapolis American Indian Center reopened after a two-year, $32 million renovation and expansion supported by Sunrise Banks. The center, now nearly double its original size, includes new features like a larger gym, meeting spaces, and a teen tech center. The renovation enhances the center’s ability to serve Minnesota’s Indigenous communities with improved facilities, showcasing its role as a cultural and community hub.
- The V3 Sports Center aims to revitalize North Minneapolis with a state-of-the-art facility that includes aquatic spaces, fitness areas, and community programming. This project focuses on improving public health, promoting wellness, and fostering economic development in the area. The center seeks to become a hub for physical activity and social connection, offering accessible resources to underserved communities.
Who is eligible for a New Markets Tax Credit project?
The New Markets Tax Credit (NMTC) program encourages private investment in low-to-moderate-income communities. In order to be eligible, a project must meet census tract location eligibility based on primary metrics like poverty rate, the Area Median Income (AMI), and unemployment, must create tangible community benefits such as jobs, goods, and services, and must remain compliant with the regulations and requirements set forth by the CDFI fund for the NMTC program.
Successful projects using the program in the past have included:
- Commercial Development
- Factories and Industrial Facilities
- Education Facilities
- Mixed-use Projects
- Healthcare or Health-related Facilities
- Retail Projects
- Community or Cultural Centers