Leverage Loans

In addition to making investments utilizing New Markets Tax Credits, Seedco Financial also makes loans of up to $2MM directly into NMTC structures alongside equity investors. A leverage loan is not a direct loan to the project, but a loan to an investment fund typically created for the transaction. In order to leverage the tax credits, the leverage loan and the tax credit investment are pooled in the investment fund before the qualified equity investment is made.

Loans are evaluated in accordance with Seedco Financial underwriting guidelines and the particular NMTC structuring requirements of each transaction. An example of this type of investment is the Pitkin Theater project in Brooklyn, NY, where Seedco Financial made a $2MM loan as part of a $24.8MM senior participation loan.

Contact us at NMTC@Seedco.org or call us toll-free at: 877.296.8878 for additional information about our Leverage Loan Program.