Popular

New Markets Tax Credit Program

Providing the support and resources needed to advance projects that create meaningful impact in low-income communities through the New Markets Tax Credit Program.

787-771-3116

Let's drive growth in our communities together

  • New Markets Tax Credit (NMTC) is a federal initiative designed to attract private investment to low-income communities through tax incentives for investors. Through certified Community Development Entities (CDEs), capital is directed to businesses and projects that promote economic development, create jobs, and expand access to essential services.
  • Popular Community Capital (PCC), a subsidiary of Banco Popular, was established as a Community Development Entity (CDE) in 2015 and has secured $215 million in NMTC allocations. PCC specializes in providing gap financing solutions that help make high-impact community projects possible.
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Popular Community Capital's Areas of Focus

  • Healthcare: Projects that expand access to healthcare services in low-income communities.
  • Manufacturing and Industrial: Projects that support the creation of quality employment opportunities.
  • Multi-Service Community Centers: Organizations that provide essential, educational, and community-based services to youth and underserved populations.
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Areas we serve

  • Puerto Rico.
  • Florida (South Florida).
  • New York (Metropolitan Area).
  • U.S. Virgin Islands.
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Benefits

  • Helps bridge the financing gap needed to move a project forward.
  • Potential debt forgiveness at the end of the seven-year compliance period, subject to the transaction structure.
  • Provides flexible financing options for eligible project costs.
  • Offers more favorable terms and conditions than conventional financing.
  • Supports job creation and retention.
  • Generates meaningful community impact in low-income and underserved communities.
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General Requirements1

  • Be a for-profit (corporation, LLC, partnership, etc.) or nonprofit organization.
  • Be located in and provide goods or services within a qualifying low-income community, as defined by the Community Development Financial Institutions Fund (CDFI Fund).
  • Complete an Intake Form and provide information about the project and its alignment with program requirements.
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Clients/Organizations that have benefited from the program

  • Ponce Health Science University.
  • Master Group.
  • Para La Naturaleza.
  • Plaza Warehousing & Realty.
  • Casa Kai.
  • COSSMA.
  • Boys & Girls Club.
  • Caribbean Surgicare.
  • CDI Laboratories.
  • YMCA of South Florida.
  • Hospital Menonita de Caguas.
  • Make the Road New York.

We're Here to Help. Call us or email commercialconstruction@popular.com to guide you.

787-771-3116

Financing Process

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STEP 1Initial Evaluation

Preliminary assessment of the project to determine its eligibility under NMTC and PCC guidelines.

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STEP 2Structuring

We develop a financing structure tailored to your project's needs.

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STEP 3Closing and Compliance Period

The project must comply with program requirements throughout the seven-year compliance period.

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STEP 4Program Completion

This phase may include debt restructuring or debt forgiveness, depending on the transaction structure.

Work with a Specialized Team

Access Our Services

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Request a Consultation

Receive personalized guidance from Popular Community Capital's experienced team.

787-771-3116
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Contact Us Directly

Send your questions or supporting documents to commercialconstruction@popular.com and a member of our team will follow up with you.

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Frequently Asked Questions

  • A Community Development Entity (CDE) is a certified organization that receives NMTC allocations and uses them to channel investment into projects located in low-income communities.

  • Popular Community Capital (PCC) is a certified Community Development Entity (CDE) and a subsidiary of Banco Popular. PCC supports eligible projects by structuring financing transactions under the NMTC Program.

    Each year, PCC applies for tax credit allocation authority from the Community Development Financial Institutions Fund (CDFI Fund). These allocations allow PCC to facilitate investments in qualifying projects and help investors receive associated federal tax credits.

  • The NMTC Program is administered by the Community Development Financial Institutions Fund (CDFI Fund), an agency of the U.S. Department of the Treasury, which allocates tax credits to certified entities.

  • Not necessarily. In addition to location, factors such as community impact, project feasibility, and alignment with program objectives are evaluated.

  • An NMTC investor is typically a financial institution or another entity with federal tax liability that is interested in making a private capital investment in exchange for federal tax credits. In an NMTC transaction, the investor receives the tax credit, which may be used to reduce federal tax liability over the program's compliance period.

For additional information, visit our Help Center.

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