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New Markets Tax Credit
Are companies that SBA selects as NMVCCs automatically eligible for New Markets Tax Credits?
No. The U.S. Department of Treasury (Treasury) has statutory authority to certify entities as Community Development Entities ("CDE") and to allocate New Markets Tax Credits to such entities. Treasury plans to conduct an annual competitive process for allocating the New Markets Tax Credits to eligible CDEs. For further information, visit the Treasury web site at
www.cdfifund.gov/applications/index.asp.
Are SSBICs automatically eligible for New Markets Tax Credits?
By law, SSBICs are presumed to be CDEs. CDEs automatically are eligible to apply for the New Markets Tax Credits. However, all CDEs must go through a competitive application process to receive an allocation from Treasury of those tax credits.
Disclaimer: Please note that this document is not an official policy statement about the NMVC program. SBA continues to develop its policies and procedures for the NMVC program. Accordingly, these FAQs are subject to change and are not binding on any SBA decision.
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