Wednesday, March 14, 2012

New Mexico Offers Low Cost Financing Through NMTCs


Business owners can apply for low-interest loans through March 30 from the New Mexico Finance Authority, which has available up to $46 million in New Markets Tax Credits.

This funding can be used to develop or expand commercial, industrial, retail and service businesses. The tax credits can provide low-cost gap financing for projects and expansions that are greater than $5 million, and the benefits include lower cost of capital, more flexible terms (such as higher loan-to-value ratios, lower debt coverage requirements and extended interest-only payment periods), and the potential for a significant portion of the capital to stay in the project at the end of a seven-year compliance period.

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