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:

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