July 13, 2021: NMTC Small-Dollar Loans and Loan Funds

Published by Michael Novogradac on Tuesday, July 13, 2021 - 1:00pm

In this week’s Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac principal Erin Neff, CPA, discuss two common questions asked by Novogradac clients who are thinking about applying for new markets tax credit allocation (NMTC) authority: 1. Are there particular types of borrowers that are underserved by community development entities? 2. How can a NMTC applicant can improve the chances of getting a larger tax credit award? Michael and Erin discuss the answer that connects these two questions, namely using a portion of one’s allocation to make small-dollar loans, which are principally done through loan pools. Learn about various tax and compliance considerations related to loan pools, as well as best practices.