Qualified Active Low-Income Community Business (QALICB)
Through the NMTC Program, the CDFI Fund allocates tax credit authority to Community Development Entities (CDEs) through a competitive application process. CDEs are financial intermediaries through which private capital flows from an investor to a qualified business located in a low-income community.
CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. Using the capital from these equity investments, CDEs can make loans and investments to businesses operating in low-income communities on better rates and terms and more flexible features than the market. The NMTC program is flexible regarding project type and purpose.
QALICBs can be used to finance equipment, operations, or real estate. Real estate financing can purchase or rehabilitate retail, manufacturing, agriculture, community facilities (e.g., health services, museums, or charter schools), rental or for-sale housing, or combinations of these. A “low-income community” is defined as any population census tract where the poverty rate for such tract is at least 20% or in the case of a tract not located within a metropolitan area, median family income for such tract does not exceed 80% of statewide median family income, or in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80% of the greater of statewide median family income or the metropolitan area median family income. The actual cash investment made by the investor to the CDE, which is referred to as the equity investment, is the first step in defining a QEI.
This cash investment eventually qualifies for the NMTC provided that the CDE makes qualified low income community investments (QLICIs). A QEI is, in general, any equity investment in a CDE if:
1. Such investment is acquired by the investor at its original issue (directly or through an underwriter) solely in exchange for cash,
2. Substantially all (at least 85%) of the cash is used by the CDE to make qualified low-income community investments (QLICI), and
3. The investment is designated by the CDE as a QEI on its books and records using any reasonable method. The term equity investment means any stock in an entity which is a corporation, and any capital interest in an entity which is a partnership.
Name of QALICB (Sponsor's Company in Service Areas
Medical Facility Operators (select type and enter # of people for each type)
Names of Owners Holding 20% or more of the Holding Company
“This appraisal assumes that all of the information obtained
for analysis is accurate: this information has been verified to the
extent possible by the appraisers….At the request of the client
and for purposes of this appraisal, the subject is valued as if
the improvement renovations/updates were completed and
available to the market as of the completion date.”