APPLICATION PROCEDURES

Finance New Mexico accepts applications from new or existing businesses located in Bernalillo, Dona Ana, Sandoval, San Juan, Santa Fe, Torrance and Valencia Counties through periodic competitive application rounds as determined by the NMFA Board of Directors.  Projects located in all other counties are accepted on a first come, first served basis.

Interested businesses must submit a complete application, attachments and application certification to NMTC@NMFA.NET.

New Markets Tax Credits


The New Mexico Finance Authority is pleased to provide New Markets Tax Credits (“NMTC”) loan funds dedicated solely to New Mexico businesses. NMTC loans are combined with other sources of funding that are secured by the applicant and managed by Finance New Mexico.

Overview

The Statewide Economic Development Finance Act provides the New Mexico Finance Authority with broad authority to operate financing programs that stimulate economic development including the power to form, operate, own or co-own qualified Community Development Entities (“CDEs”) for the purpose of participating in the New Markets Tax Credit (“NMTC”) Program.

In 2006, the Finance Authority formed Finance New Mexico, LLC (“Finance New Mexico”), a qualified CDE, and in 2007, Finance New Mexico was awarded an allocation of $110 million in New Markets Tax Credits authority which will enable Finance New Mexico to generate capital that it will lend directly to qualified businesses in low-income areas. Finance New Mexico was also successful in securing three additional awards in federal New Markets Tax Credits bringing the total allocation to $246 million.

The Finance Authority operates the NMTC program on behalf of Finance New Mexico under the guidance of its adopted New Markets Tax Credit Program Policies and Procedures, Economic Impact Policies and Lending and Credit Policies. The NMTC program was established primarily to provide greater access to financing for new, expanding or relocating businesses in underserved areas across the country. Finance New Mexico and the Finance Authority are targeting the use of allocation of tax credit incentives to add to existing statewide economic development initiatives.

Eligibility

  1. Loans or investments located in low-income census tracts
  2. Development of commercial, industrial and retail real estate projects (including community facilities) in low income census tracts.
  3. Development of for sale housing in low-income census tracts.

Ineligible activities include:

  1. Businesses that derive more than 80 percent of their income from the rental of residential real estate.
  2. A business which develops or holds intangibles for sale or license (i.e.: Research and Development).
  3. Businesses that operate a country club, golf course, massage parlor, hot tub facility, suntan facility, racetrack or other gambling facility or liquor store.
  4. Certain farming businesses.

To Test Address For Eligibility:

To quickly check eligibility, enter the address in the Reznick Group’s NMTC Qualifying Census Tracts Mapping Tool.
For more information you can visit the Federal Financial Institutions Examination Council’s Geocoding/Mapping website . This site provides various demographics such as percent below the Poverty Rate (should be 20% or greater) and the tract median family income % (should be 80% or less) based on a street address.

CONTACT

 

For more information about the New Markets Tax Credit program, please contact the NMTC Application manager, nmtc@nmfa.net

Finance New Mexico, LLC is an Equal Opportunity Provider