A Community Development Entity (CDE) is a certified organization that receives New Markets Tax Credit (NMTC) allocations and uses them to channel investment into projects located in low-income communities.
Popular Community Capital (PCC) is a certified Community Development Entity (CDE) and a subsidiary of Banco Popular that supports eligible projects through the structuring of NMTC transactions.
Each year, PCC applies for tax credit allocation authority from the Community Development Financial Institutions Fund (CDFI Fund). These allocations enable PCC to direct investments toward initiatives that meet program requirements and facilitate investors' access to the associated tax credits.
The NMTC Program is administered by the Community Development Financial Institutions Fund (CDFI Fund), an agency of the U.S. Department of the Treasury, which allocates tax credits to certified entities.
Not necessarily. In addition to location, factors such as community impact, project viability, and alignment with program objectives are evaluated.
An NMTC investor is generally a financial institution or other entity with federal tax liability that is interested in making a private capital investment in exchange for a federal tax credit. In an NMTC transaction, the investor receives the tax credit, which can be used to reduce its federal tax liability over the life of the program.
No. You do not need to be an existing Banco Popular commercial customer to benefit from the NMTC Program. Eligible projects may participate regardless of where they currently maintain their banking relationship, provided they meet program requirements and receive a favorable evaluation.
The New Markets Tax Credit (NMTC) Program is a federal initiative established by the U.S. Congress in 2000 to encourage private investment in low-income communities through tax incentives, helping community-impact projects access capital on more favorable terms.
Projects located in low-income communities that generate economic or social impact and contribute to the development of essential goods, services, or jobs may benefit from the NMTC Program. Each project is evaluated individually based on its viability and alignment with program objectives and the CDE's strategy.
Within that framework, PCC primarily focuses on healthcare initiatives, including organizations that expand access to healthcare services; manufacturing and industrial projects that promote the creation of quality, accessible jobs; and multi-service community centers that provide essential and educational services to youth and local communities.
The tax credit helps attract private investment, resulting in an infusion of capital for the project, facilitating its development and strengthening its impact on the community.
Yes. In an NMTC transaction, an investor receives a federal tax credit equal to 39% of the investment, claimed over a seven-year compliance period.
A New Markets Tax Credit (NMTC) loan is financing structured by a Community Development Entity (CDE), such as Popular Community Capital (PCC), to support an eligible project. These loans often offer more favorable terms than traditional financing during the program's compliance period.
The NMTC Program has a seven-year compliance period. During this time, the project must continue operating and comply with program requirements to maintain the benefits associated with the transaction.
You can contact the Popular Community Capital team for an initial consultation to learn whether your project may benefit from the NMTC Program.
