New Markets Tax Credit
(NMTC) Investments

Chase plays a three-part role in providing New Markets Tax Credit (NMTC) financing for valuable community development projects. We are:

  • An active and competitive tax credit equity investor in nearly $3.7 billion of NMTC authority allocated to other Community Development Entity (CDE) partners.
  • The recipient of $480 million in NMTC allocation.
  • A bridge loan provider for a variety of NMTC projects.
 

Tax Credit Equity Investor

We are a leading a tax credit equity investor in the NMTC
allocations that a third-party CDE allocates. As a tax credit
equity investor, we've financed a wide variety of projects
across the U.S., including:

  • A state-of-the-art charter school in Brooklyn ($75 million qualified equity investment (QEI))
  • A multipurpose YWCA facility in Los Angeles—including a jobs-training and educational center, a student dormitory, recreational facilities and offices ($50 million in QEI)
  • A renovated and expanded historic theater and performing arts complex in Rochester, New York ($39 million in QEI)
  • A technical jobs-training facility in Chicago ($9 million)

We invest in the full spectrum of eligible asset types under the New Markets Tax Credit program, including small businesses, not-for-profit and for-profit real estate projects, community development financial institutions, NMTC loan funds and more.

We prioritize investments that:

  • Have the greatest possible positive community impact.
  • Are located in areas of higher economic distress.
  • Are located in the bank's retail banking footprint, including New York City, New York state, the Midwest, the Pacific Northwest, the Southwest, California and Florida.
 

Recipient of NMTC Allocations

Through our Community Development Banking group, we use these five proprietary NMTC allocations to provide clients—CDEs, Community Development Financial Institutions (CDFIs), not-for-profits, real estate developers and operating businesses—with senior debt at interest rates substantially below the market rate. Our efficient lending model offers low fees and efficient closing timelines, making us a powerful ally for NMTC borrowers. Projects include:

  • A low-cost grocery store chain in Los Angeles ($7.8 million)
  • A new distribution facility for a steel manufacturer in Oregon ($10.8 million)

Bridge Loan Provider

We leverage the full strength of our resources, allowing us to provide streamlined financing for project borrowers, CDE partners and other NMTC-related entities. Within the bank, we have access to:

  • Industry-specific leverage and bridge loan providers, including experienced lenders to CDFIs, governments, health care businesses, not-for-profits, institutions and midsize businesses.
  • The technical and logistical support needed for a successful project, including construction disbursement capabilities, account creation and monitoring and more.
 
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Building a Better Tomorrow

 
 

See how Chase is bringing
new life to distressed
neighborhoods across
the U.S.

 
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Strengthening Communities

We exceeded the 10-year, $800 billion Public Commitment we made in 2004 to make loans and investments for housing, small businesses and community development in the U.S. By the end of 2012 – one year ahead of schedule – we had lent or invested $844 billion in mortgages, small business and nonprofit loans and affordable housing, primarily for minority or lower-income borrowers and communities.

 

To learn more about Community Development Banking,
please contact us or call your Commercial Banker.