Model NMTC Project Components

• Project or business capital requirement of $3 million to $20 million.
• Deals in which "substantially all" (85%) of the capital can stay invested in the project for the 7-year tax credit period and are capable of being refinanced at the end of year 7.
• The type of business investments eligible under the NMTC program is very broad allowing virtually any real estate project or operating business. (There are some exceptions to this eligibility, such as insurance companies and others.) Projects can be undertaken by either for-profit or nonprofit entities.
• NCIF and CEI bring a mission-oriented perspective to underwriting proposed NMTC transactions. An evaluation of a project's likelihood of financial success is only one element that we consider. NCIF and CEI approach each deal more holistically using a triple bottom-line approach. This more dimensional review of a proposed NMTC project is sometimes also referred to as "3E" underwriting.
• Strong economic development impact (direct or indirect), such as helping to create or retain jobs; acting as the catalyst for larger or additional development or redevelopment, infusing sources of new investment capital into an under-served, low-income area; creating new access to community services.
• Positive social and environmental impacts that could include efforts such as providing new or expanded community services, creating or retaining jobs for low-income people, using recycled materials, increasing energy efficiency, advancing "green" building concepts, supporting sustainable forestry, etc.

To read more about CEI's transaction structure for NMTC loans, visit
http://www.ceimaine.org.

Read more about the triple bottom-line underwriting approach that NCIF uses in all its lending and investing activities.