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NMTC

The CDFI Fund just announced the next round of New Market Tax Credits awards with $3.5 billion in funding. Public schools, both district and charter, are an eligible use of NMTCs and have been the beneficiaries of hundreds of millions of tax credits. While half of NMTC investments go to business expansions and commercial real estate, the balance goes to a wide range of community facilities, including private, district and charter schools. About 4% of all NMTCs are used for schools. NMTCs help schools and other community facility projects achieve significant savings on the cost of financing new or renovated facilities.  Through the NMTC program, charter schools can access patient capital in the form of a seven-year loan with interest rates, terms, and conditions much more favorable than what they might secure through a conventional loan. By the end of the investment, a school can realize about a 20% savings on the total project cost.

Visit our page on NMTCs to learn more.