Small Business Stories

Most NMTC projects are fairly large. The average NMTC project is $16.5 million, utilizing about $8.5 million in NMTC allocation. But while the average project is large, the program does support a surprising number of small businesses. Some CDEs use NMTC allocation to capitalize revolving loan funds finance quite a few small businesses. In fact, 1,175 of the 5,236 projects (22.4%) in the NMTC Coalition’s project dataset used less than $1 million in NMTC allocation.

Below are a few case studies of Community Development Entities financing small businesses using the New Markets Tax Credit.

Portland Small Business Loan Fund

CDEs and Partners: A joint collaboration among the Portland Development Commission, U.S. Bancorp Community Development Corporation and Portland New Markets Fund I (an affiliate of United Fund Advisers).

Borrower Spotlight:

  • Dragonfly Chai microbrews inspired teas using organic and fair-trade ingredients. Its dedicated crew of brewers, delivery drivers and support staff has earned the loyalty of a growing list of cafes and restaurants.
  • Ruby Jewel Hand-Crafted Ice Cream uses local ingredients in its small-batch ice cream and cookies, wowing devotees at its two Portland scoop shops. Their ice cream sandwiches can also be found at local grocers (pictured above).
  • JD’s Shoe Repair is a woman-owned cobbler and shoemaker operating out of a former gas station that now houses several local businesses.
  • Discovery Gardens Family Childcare provides social, emotional, intellectual and physical care to children of working families in neighborhoods that are often underserved.
  • Night Flight aerial studio offers private and group classes. The Night Flight dance troupe regularly performs in theater productions and at parties and other events.

MEDC Revolving Loan Fund

Wisconsin – MEDC Revolving Loan Fund

Rural AL and FL Panhandle Revolving Loan Pool

The Valued Advisor Fund (VAF) partnered with PNC Bank and a CDFI Bank, United Bank of Alabama, to finance a revolving loan pool serving small businesses in rural Alabama and the Florida panhandle.

Borrower Spotlight: Bon Secour Valley, Inc.

Alabama – Revolving Loan