Startup USA Guide
Part B · Startup-relevant scheme

New Markets Tax Credit Program (NMTC)

US Department of the Treasury (CDFI Fund) / IRS

Other Growth / Scaling

NMTC gives investors a federal tax credit (39% of their investment over 7 years) for equity investments in certified Community Development Entities (CDEs), which then lend to or invest in businesses in low-income communities.

Type of support
Other
Best suited for
Growth
Headline amount
Below-market financing via a CDE
How much
Indirect — via a CDE in a qualifying tract

Objectives

Encourage private capital investment in impoverished, low-income communities that otherwise struggle to attract conventional financing.

Who can apply?

  • A business benefits by being located in, and getting financing from, a CDE operating in a qualifying low-income census tract.
  • $10 billion in allocation authority was available for the combined CY2024-2025 round.

What do you get?

  • Below-market financing terms are common since CDEs pass along some of the investor tax benefit.
  • Can fund business loans, real estate, and other qualified low-income community investments.

How to apply

Identify a CDE operating in your low-income census tract and inquire about financing — the CDFI Fund publishes a list of allocatees.

Go to official portal