New Markets Tax Credit Program

NMTC Round 31 Application

In September 2023, NMFA received a $25 million allocation of tax credits as its NMTC award from the 2022 application cycle. This application round will be open from October 16 – November 13, 2023.  The application deadline was November 13, 2023.

Applicants may request up to $10 million, with a minimum request amount of $5 million.


The New Markets Tax Credit program is a federal program designed to provide businesses in rural or low-income communities with greater access to capital in order to increase job creation and development activities. In 2007, with the explicit authorization of the New Mexico Legislature, NMFA formed a subsidiary called Finance New Mexico, LLC (FNM) to pursue an allocation of federal tax credits available under the New Markets Tax Credit program. Since 2007, the CDFI Fund at the US Department of Treasury has awarded FNM seven NMTC allocation awards totaling $346 million. 

Under the New Markets Tax Credit program, FNM leverages private capital with funds derived from the sale of tax credits to investors. The incentive to investors is a 39% federal income tax credit earned over seven years for every dollar invested in a qualified low-income community enterprise. The benefit to New Mexico businesses is very-low-cost capital, with flexible lending criteria and the potential to convert portions of NMTC loans to equity.

Through FNM, NMFA has offered 30 competitive application cycles since its inception, including application rounds exclusively for projects located in rural areas. Through these application cycles, Finance New Mexico has closed transactions for 29 projects totaling $314 million, including an $8 million Small Loan Pool financing.


Most Recent Funding Round

In September 2023, NMFA received a $25 million allocation of tax credits as its NMTC award from the 2022 application cycle.

The application will be open from October 16 – November 13, 2023.

In July 2020, NMFA received a $35 million allocation of tax credits as its NMTC award from the 2019 application cycle. These tax credits will allow FNM to invest its NMTC allocation in eligible census tracts throughout the state, including those in metropolitan and rural counties. The recent award requires FNM to invest at least $7 million in rural areas and at least $7 million in small projects.



Applicants: For-profit and nonprofit entities that have a project located in a federally designated low-income census tract in New Mexico.  For a map of qualified census tracts, click here. 

Project types: Building, equipment, and working capital

Financing amount: $5 million and above

Terms: Loans of up to 40 years at below-market interest rates, with interest-only payments due for the first seven years

Other: Successful applicants must secure a primary lender that is willing to leverage its loans through the NMTC program. Funding is offered through quarterly competitive application cycles and is subject to available funding.



The deadline for this funding round is November 13, 2023.  The applications will be scored and ranked according to the New Market Tax Credit program criteria.  The rankings will be reviewed by the Finance New Mexico Advisory Board and then by the New Mexico Finance Authority Board of Directors.  All applicants will be notified of the outcome following the NMFA Board meeting.



Please contact NMFA staff at if you have questions. 



New Markets Tax Credit Small Loan Pool

The goal of the NMTC Small Loan Pool is to provide flexible financing offered at advantageous terms for eligible projects between $500,000 and $4 million to qualified businesses located in low-income communities that have historically lacked access to credit. 

The NMTC Small Loan Pool was strategically created in response to market needs for financing eligible projects under $4 million. The NMTC Program described above meets the market segment above $5 million. NMFA believes the market for small businesses and small-scale developments can be further enhanced by providing access to affordable, flexible capital through non-traditional lending. NMFA identified an unmet demand for financing between $500,000 and $4 million, and a need for loans that allow for a higher loan-to-value ratios of up to 90% for senior debt and 95% loan-to-value for subordinate debt. The NMTC Small Loan Pool was created in response to these needs.



For more information about the New Markets Tax Credit program, email

In accordance with federal law and U.S. Department of the Treasury policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington, D.C. 20220 or call (202) 622-1160.


NMTC Application Webinar, October 31, 2023
NMTC Webinar Recording, October 31, 2023
How to reduce the size of a PDF file
NMTC Policies and Procedures, rev. 2-24-22
NMTC Lending and Credit Policies, rev. 2-24-22
Small Loan Pool Highlights
Small Loan Pool Policies