NMTC equity can provide 20-25% of equity, like gap financing to a project or business.
Most NMTC-funded businesses and projects receive financing that involves more favorable terms and conditions than those the market typically offers and may include some of the following:
Below market interest rates A longer than standard period of interest only loan payments Higher than standard loan to value ratio A longer than standard amortization period More flexible borrower credit standards Nontraditional forms of collateral Lower than standard debt service coverage ratio Subordination