Yes. It’s possible to look at the operations of the health care organization to determine if NMTC financing might be available.
The same minimum size of NMTC financing is applicable, and the NMTC proceeds will need to be used within 12 months of closing, but working capital can be a permissible use of the proceeds.
Using NMTC proceeds for working capital, however, hasn’t been a traditional use of NMTC financing. While it’s gaining acceptance in the NMTC industry, there are pre- and post-closing compliance considerations.