Project Sponsors

SB Friedman provides comprehensive consulting services on behalf of project sponsors across the country seeking to access NMTC funding. These clients include nonprofits, mission-driven developers, manufacturers, government agencies, and others looking to build a project or expand their programming in a low-income community. Key services include the following:

Securing NMTC Allocation and Equity for Projects

We assist clients in securing NMTC allocation from Community Development Entities (CDEs) and equity from NMTC investors. We are effective in making pitches to NMTC financing partners to secure commitments in a very competitive environment where these resources are often scarce. Our services include:

  • Identifying appropriate financing participants for projects based on geography, project type, community impacts, and other factors;
  • Presenting the community impacts of a proposed project in a compelling manner to attract interest from CDEs and investors;
  • Summarizing transaction details in clear, understandable formats that address CDE/investor questions and create a clear path to closing;
  • Obtaining term sheets from CDEs and investors committing NMTC resources to the transaction; and
  • Negotiating favorable terms on the NMTC financing, including CDE fees and investor pricing, to maximize NMTC net subsidy.

Maximizing the Financial Benefits of NMTC

In addition to securing NMTC allocation and equity, we work closely with clients to maximize the subsidy that is generated from the NMTC. On the front end, we work to negotiate favorable terms with CDEs and Investors to maximize the financial benefits for the project. We also work closely with our sponsors to assemble the rest of the deal team—including NMTC legal counsel and accountants—that will lead to an efficient closing process.

Educating Staff and Stakeholders

Throughout our engagement, we help to educate staff, board members, and other stakeholders. NMTC is complex and we help our clients understand program/competitive dynamics, timing requirements, work steps, deal structures, and compliance requirements. Our hands-on and collaborative approach—from technical trainings and education sessions to a general openness to questions—helps staff and board members ensure that their organizations are successful with NMTC.

Structuring Financing

We provide transaction structuring services for our clients to arrive at the most feasible, efficient and beneficial structure for all parties. The flexibility of the NMTC program allows sponsors to opt for multiple transaction structures. However, each has its own implications for an organization’s operations, balance sheet, financial reporting obligations, etc. We routinely work with a diverse array of sources, such as conventional bank debt, CDFI Loans, TIF, historic tax credits, low-income housing tax credits, state tax credits, tax-exempt bonds, philanthropic grants, loan guarantees, PRIs/impact investments, and government grants.

Leading Deal Closings

With much of the success of NMTC closing dependent on the project sponsor, we take an active leadership role in the closing process. This begins early by identifying deal-specific challenges—whether they are obtaining site control, navigating the entitlement process, or securing other financing—and working closely with clients to overcome these “gating” items. With many different parties, legal documents, and due diligence involved in a closing, we work closely with our clients to ensure that the closing process moves along smoothly and reliably for everyone. With this emphasis on closing support, we can maximize the benefits of NMTC.

Post Closing Compliance Support

In addition to navigating a successful closing, we help educate and empower our clients to understand what is required post-closing during the 7-year NMTC compliance period and the eventual “unwind” of the transaction.  We are well-versed in loan disbursement, loan servicing, compliance reporting, community impact reporting and troubleshooting and help our clients navigate accordingly.