New Markets Tax Credits

BlueHub Capital's New Markets Tax Credit (NMTC) program invests in community and economic development projects that create jobs and opportunities in economically distressed communities nationwide. 

To date, BlueHub Capital has received eight NMTC allocations totaling $523 million from the U.S. Department of the Treasury. We have deployed all eight of these allocations in more than 45 transactions in 22 states across the U.S., ranging from health providers and community services in the Northeast to sustainable forestry projects in rural communities in West Virginia, Florida, and the Northwest; food manufacturers in Tennessee and Georgia, and commercial real estate redevelopment projects in distressed communities in Texas, North Dakota, Virginia and Connecticut. Our investments have allowed these projects to leverage over $1.5 billion in additional capital to their communities. 

BlueHub Loan Fund also makes NMTC leverage loans, sometimes in tandem with BlueHub's NMTC program, to support community health centers, child care facilities and charter schools.

We use earnings from our NMTC awards to launch new initiatives and expand our core lending programs, including BlueHub Loan Fund, the BlueHub SUN foreclosure prevention program, and BlueHub Energy

Investment Strategy

BlueHub’s NMTC strategy is three-pronged:

• Invest in projects large enough to support and strengthen local industry and diversify a low-income community’s economic base;

•Work with co-lenders and investors with deep experience in the industries and regions in which we are investing; and

• Structure and price our investments to match the businesses’ or projects’ needs with long-term capital and investment strategies likely to generate sustainable social and financial returns.

Flexible capital for businesses and community facilities

Our NMTC investments provide debt and equity capital with the following flexible features:

  • Below market interest rates
  • Lower than standard origination fees
  • Longer than standard period of interest-only loan payments
  • Higher than standard loan-to-value ratio
  • Longer than standard amortization period
  • Lower than standard debt service coverage ratio

Our Impact

Our NMTC work helps preserve affordable housing, save homes, extend education, build communities, conserve our natural resources, and grow businesses.

Our impacts include: 

  • 19,500 jobs created and retained
  • Over 2.7MM acres of forestland sustainably managed
  • More than 5,300 young children and students served
  • 196,000 unique patients served through health care providers
  • 437,000 square feet of commercial real estate constructed or rehabbed

Read and view a case study on our NMTC investment in one of the greenest school buildings in the country.

View all Impact Stories.

 

Geography

Our NMTC program has a national footprint. We seek out businesses and community development projects in highly distressed rural and urban communities.  To date, 90% of our NMTC investments have been in non-metropolitan counties.

BlueHub Capital currently has made NMTC loans in the following states:

  • Alabama
  • California
  • Connecticut
  • Florida
  • Georgia
  • Kentucky
  • Louisiana
  • Maine
  • Massachusetts
  • Nebraska
  • New Hampshire
  • New York
  • North Carolina
  • North Dakota
  • Oregon
  • South Carolina
  • Tennessee
  • Texas
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin

 

For more information:

To learn more about the NMTC program, visit the CDFI Fund’s NMTC page.

If you would like more information, please contact Emily Kaminsky at ekaminsky@bluehubcapital.org.