Industrial Bank has been awarded a $75 million New Markets Tax Credit (NMTC) allocation that will promote community impact efforts for low-income populations across the DMV.
The Feb. 5 announcement marks the bank’s second NMTC allocation granted from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund), bringing its total to $120 million in promotion of quality job access and essential services within its designated areas.
“We believe every community deserves access to the capital needed to thrive, and this program helps make that possible,” said Terence Hosten, senior vice president of strategic initiatives for Industrial Bank. “This most recent allocation will strengthen our commitment to expanding economic opportunities in underserved communities. [It] allows us to invest in projects that create jobs, support small businesses, revitalize communities and drive long-term, sustainable growth.”
From the streets of Washington, Maryland, and many Virginia counties, to Essex County, New Jersey and the Bronx and Manhattan boroughs of New York City, the advantages of this look like breaking barriers in employment and healthcare, while investing in critical services and infrastructure, such as grocery stores, pharmacies, and educational programs, among others.
Borrowers and investors will benefit from Industrial Banks’ flexible lending terms, which include:
- No standard origination fee charged
- Below-market interest rates – at least 50% lower than standard market rates
- Extended interest-only and amortization periods – up to 84 months before amortization begins, after which they are amortized for the remainder of the 30-year term (real estate loans) or 15-year term (equipment loans)
- Higher loan-to-value ratios – up to 125%, enabling larger loans to fill financing gaps
- More flexible credit and collateral standards – supporting small businesses with limited operating histories and nonprofits engaged in multi-year capital campaigns
“We look forward to partnering with local leaders and organizations to deliver meaningful impact where it is needed most,” said Hosten.