Community Funding Group raises capital for low income community projects through the New Markets Tax Credit program. On behalf of its clients, CFG manages NMTC transactions from beginning to end.
The principle services provided are:
- Educating the client's executives and board of directors.
- Preparing the client to enter into a NMTC transaction.
- Securing a NMTC allocation for the client project.
- Syndicating the necessary equity and debt financial structure.
- Managing the team of lawyers, accountants and other advisors to complete a NMTC transaction.
Community Funding Group has developed a disciplined six step approach to completing a NMTC transaction for its clients. Our six steps begin with acquainting the client and its board of directors with the New Markets Tax Credit program. The dicsiplined approach continues with obtaining funding and managing the professionals necessary to close the transaction.
6 Steps of Consulting
- 1. Initially evaluate the project's eligibility for—and the level of—the NMTC's available financial benefits.
- 2. Work closely with the client so that the executives and board of directors understand the various aspects of a NMTC transaction, leading to the board's approval of the NMTC transaction early in the process.
- 3. Insure that all underwriting information required for the project is complete and up-to-date — i.e. operational budgets, project design, construction estimates, project cash flows, source and use of funds, etc.
- 4. Develop a summary prospectus used to attract investors and lenders to the project.
- 5. Work with the client to secure the necessary equity investments and loan commitments by having the project go through preliminary underwriting.
- 6. Manage the activities associated with successfully closing the transaction, including coordinating the various law firms, banking institutions, CPA firms and financial consultants.
Community Funding Group has found that the above 6 step process provides for an approach that greatly facilitates obtaining the necessary allocation and funding, as well as identifing potential problems and minimizing any risk that would negatively affect the closing of a NMTC transaction once it is initiated.