Case Study: Taking Advantage of New Markets Tax Credits
The Challenge
The timing to take advantage of substantial New Markets Tax Credits income tax credits that were available imposed tight time constraints for a senior lender regarding $12.1 million in asset-based New Market tax-credit loans. The deal also included an additional conventional loan, PACE Financing, and Tax Increment Financing.
Our Approach
To meet the deadline and to avoid the collapse of the transaction, extensive due diligence was performed utilizing Schmiedeskamp’s disciplined, team approach and over-the-top, diligent efforts. With proper staffing of this matter, the formation of numerous entities, preparation, review of over 250 documents and involvement with 18 parties was completed.
The Outcome
The client’s loans and related loans closed in a timely fashion to fund construction of a grocery store and convenience store in a blighted, under-served metropolitan area while achieving the benefits under the New Markets Tax Credit Program, the Tax Increment Financing and PACE Financing.