Choosing the right location can determine whether a project is merely possible, or truly financeable under the New Markets Tax Credit (NMTC) or other government program. For organizations expanding services into underserved communities, the stakes are high: balancing mission, market realities, timelines, and the requirements that drive eligibility and competitiveness.

To help clients move faster and make stronger, evidence-based decisions, True Mountain Capital (TMC) has launched a new Site Selection Tool initially designed to support NMTC-driven development and expansion.

While the tool is currently optimized for NMTC analysis, it was intentionally architected to evolve, supporting future use cases such as Historic Tax Credits (HTC), Opportunity Zones, Community Investment Act (CRA) and broader Commercial Real Estate (CRE) site strategy.

The Challenge: Turning Location Data Into Actionable Financing Strategy

NMTC planning often starts with a simple question:

“Where should we locate this project to maximize NMTC viability and community impact?”

Answering it is rarely simple.

Even within a defined area of emphasis, there may be hundreds of census tracts to evaluate. Traditional approaches rely on manual data pulls, static maps, and spreadsheets.  These are processes that are time-consuming, inconsistent, and difficult to scale across multiple markets.

More importantly, experienced NMTC practitioners understand that location quality is multi-dimensional. While income and poverty data are foundational, real-world project success also depends on access, unmet need, service gaps, and how a site fits within a broader operating footprint.

A Purpose-Built NMTC Solution, Designed to Expand

TMC’s Site Selection Tool addresses these challenges through a proprietary suitability algorithm that evaluates census tracts using a broader set of characteristics than traditional eligibility screens.

In addition to poverty and income data, the model incorporates indicators such as:

• Food deserts
• Medically underserved areas
• Other community-level characteristics that help identify high-impact locations

The result is a ranked view of opportunity, one that reflects both NMTC eligibility and practical site considerations.

Importantly, this scoring framework is modular by design, allowing new data layers, weighting schemes, and asset types to be incorporated over time. This enables TMC to extend the platform beyond NMTC as client needs evolve.

How the Tool Works Today

The NMTC Site Selection Tool follows a clear, repeatable workflow:

1. Define the Area of Emphasis

Clients specify a geographic focus based on mission, service area, or expansion strategy.

 Identify the Top Census Tracts

All census tracts within the defined area are evaluated, producing a ranked list of the top 100 tracts based on TMC’s suitability score.

3. Overlay Existing Locations

Clients’ current facilities or service locations are overlaid on the map to provide immediate spatial context.

4. Perform Radius Analysis

The tool conducts radius analysis to show how existing locations relate to top-ranked tracts. Reports summarize counts of locations within 5, 10, 25and 50-mile radii, quickly highlighting coverage, gaps, and expansion opportunities.

As shown in the Site Selection Report, clients can move seamlessly between ranked tract data and interactive map visualization, enabling faster internal alignment and decision-making.

Built by True Mountain Technologies

The Site Selection Tool was developed by employees of True Mountain Technologies, including:

• Bill Hughes, Chief Data Officer
• Ian Carroll, Chief System Architect 

Their focus was to build a platform that translates complex geospatial and demographic data into clear, defensible site strategy, grounded in the realities of NMTC financing.

Looking Ahead: Expanding to Historic Tax Credits and CRE

While the Site Selection Tool is currently optimized for NMTC analysis, True Mountain Capital intends to extend the platform to support additional use cases, including:

• Historic Tax Credit (HTC) analysis, where the focus shifts from census tracts to historically eligible buildings and districts, and
• Commercial Real Estate (CRE) site selection, where market dynamics, access, and asset-type performance become central. CRE enhancements will incorporate additional ranking criteria based on expanded demographic analysis, Community Reinvestment Act (CRA) considerations, Opportunity Zone designations, USDA lending eligibility, and other location-based financing and incentive programs.

Because the underlying platform already supports advanced scoring, spatial overlays, and radius-based analysis, these future enhancements will build on the same core architecture, substituting new data inputs and scoring logic tailored to each financing structure or asset class.

This roadmap reflects TMC’s broader commitment to integrating data analytics with real-world transaction expertise—not as a generic mapping exercise, but as a practical, decision-oriented tool aligned with how projects are evaluated, structured, and financed.

Experience That Goes Beyond the Model

Data alone does not close NMTC transactions.

TMC’s Site Selection Tool is informed by extensive NMTC closing experience, ensuring that analytics are grounded in how projects are evaluated, structured, and ultimately financed. This same experience will guide future expansions of the platform into HTC and CRE, where eligibility, feasibility, and market performance intersect.

A Smarter Way to Start the Conversation

For clients evaluating new markets, facilities, or expansion strategies, the Site Selection Tool provides a faster, clearer starting point.  This supports informed conversations early, before time and capital are committed.

As the platform evolves, it will continue to support TMC’s core mission: helping clients align location, impact, and capital in ways that lead to successful outcomes.

Contact True Mountain Capital to learn more or request a demonstration of the Site Selection Tool.

Jeff Cotton
President & CEO
True Mountain Capital, LLC
jcotton@truemountaincapital.com
(901) 347-7276

By Jeff Cotton, CEO of True Mountain Capital

Securing New Markets Tax Credit (NMTC) financing can be transformative for companies and organizations developing or expanding facilities in underserved communities. However, navigating the complexities of the NMTC program requires expertise, strategic planning, and the right partnerships. True Mountain Capital distinguishes itself as a leading consulting firm uniquely positioned to assist clients in obtaining NMTC funding.

With nearly $500 million in financing closed for approximately $750 million in project capitalization, True Mountain Capital brings over a decade of experience to the New Markets and Historic Tax Credit industry. This extensive experience aids clients in navigating the complex NMTC process effectively.

Comprehensive Approach to Financial Solutions

We employ a holistic approach to financial solutions, combining debt, equity, and tax strategies to meet the unique demands of each client. This approach ensures that every project is equipped to maximize potential subsidies appropriately aligned with the client's goals.

Our proprietary True Mountain Summit™ platform enhances efficiency by streamlining the sourcing, qualification, structuring, and management of all phases of project development. This technological leadership allows clients to successfully navigate the NMTC funding process with reduced complexity and increased chances of success.  To obtain a detailed analysis of your project and a demo of Summit™ please use the following request form.

Tailored Consulting Services

True Mountain Capital offers a wide range of consulting services tailored to client needs. Our hands-on approach ensures active involvement from initial evaluation through project funding, construction and operations. Services range from initial eligibility and community benefits analysis, to financial structuring and modeling, to financial closing management and execution, as well as back-end whole loan trading.

Strategies for NMTC Success

To ensure success in obtaining NMTC financing, the following strategies are essential:

1. Thorough Understanding of Eligibility Criteria:
• True Mountain Capital helps clients assess their projects against NMTC eligibility criteria, which include factors such as poverty rates, median family income and unemployment levels within the targeted community​.  We also offer a free online tool that allows clients to rapidly determine eligibility for each of these factors.
2. Strategic Project Structuring:
• Proper structuring of projects is crucial to meet the requirements and attract investor interest. True Mountain Capital guides clients in structuring deals that maximize tax credit benefits while aligning with community development goals​
3. Collaboration with Local Stakeholders:
• Engaging local stakeholders, including community leaders and organizations, is vital for gaining support and ensuring that projects address real community needs.
4. Effective Use of Data and Analytics:
• Utilizing data-driven insights to identify opportunities and optimize project impact is a key strategy. True Mountain Capital leverages data analytics and artificial intelligence to help clients make informed decisions throughout the NMTC process
5. Long-term Vision and Sustainability:
• Focusing on the long-term sustainability of projects ensures lasting impact. True Mountain Capital emphasizes strategies that promote economic growth and community revitalization beyond the initial NMTC funding​

Your Partner in the NMTC Funding Process

The NMTC process can be challenging and time-consuming, with timelines ranging from several months to over a year. Our expertise and hands-on approach provide clients with the guidance and support needed to successfully navigate this process, from understanding eligibility criteria to structuring projects for maximum impact.

True Mountain Capital is the ideal partner for obtaining NMTC financing with our unique blend of industry knowledge, comprehensive financial solutions, innovative technology, and commitment to community development. By choosing True Mountain, clients will gain a trusted partner in achieving NMTC funding success.  For more information please contact us at True Mountain Capital .

Warm regards,

Jeff Cotton
President & CEO
True Mountain Capital, LLC
jcotton@truemountaincapital.com
(901) 347-7276

By Jeff Cotton, CEO - True Mountain Capital

Introduction

The New Markets Tax Credit (NMTC) program is a powerful tool for spurring economic development in underserved communities. Understanding the application process is crucial for businesses and organizations aiming to leverage this opportunity. 

What is the NMTC?

Congress established the NMTC program in 2000 to encourage private investment into low-income communities. The New Markets Tax Credit (NMTC) Program is managed by the Community Development Financial Institutions Fund (CDFI Fund), which is part of the U.S. Department of the Treasury. Investors receive tax incentives in exchange for equity investments in Community Development Entities (CDEs), which then invest in qualified businesses and projects. 

The NMTC application process

1. Pre-Application Preparation

Before applying for the NMTC, ensure your project meets the eligibility criteria. You can use the True Mountain Capital NMTC Eligibility Tool to quickly determine this.  Gather essential documents, such as business plans, financial statements, and impact projections. Partnering with a firm like True Mountain Capital is crucial to understanding eligibility and navigating the application process.

1. Information Required for the NMTC Application

Business and Project Details: Describe your business, its mission, and the project for which you seek NMTC funding.

Financial Projections and Statements: Provide detailed financial forecasts, past financial performance, and funding needs.

Community Impact Analysis: Explain how your project will benefit the community, including job creation, services provided, and economic growth.

Governance and Management Information: Outline the qualifications and experience of your leadership team.

Compliance with NMTC Regulations: Demonstrate your understanding of and commitment to NMTC compliance requirements. 

1. The application submission

True Mountain Capital can provide an NMTC “intake” form which will completely itemize the items you need to provide. Complete this form meticulously, ensuring all the information is provided.

The Application Process 

The flow chart below shows the structure and financial entities involved in the NMTC application process.

• CDFI Fund: A subset of the U.S. Treasury that administers the NMTC program, annually awarding $5Bn of NMTC allocation authority to CDEs.
• CDE (Community Development Entity): An organization certified by the CDFI Fund that applies for NMTC allocation and deploys that allocation into NMTC-eligible projects. CDEs receive the Investor’s equity and the Leverage Loan
• Investor: An individual or entity that makes an upfront equity investment into a NMTC-eligible project, in exchange for a 7-year stream of New Markets Tax Credits.
• Leverage Lender: An entity, typically affiliated with the Sponsor, that provides debt (the “Leverage Loan”) into a fund where it can be pooled with an equity investment from the NMTC Investor and ultimately lent to a QALICB to improve property.
• Investment Fund: A special purpose vehicle that (a) pools the capital provided by the leverage lender and the NMTC Investor and (b) funds a Qualified Equity Investment into one or many CDEs.
• QALICB (Qualified Active Low-Income Community Business): A business in a low-income, severely distressed census tract that creates many jobs and/or provides goods and services to the surrounding Low-Income Community

Please note that the CDE and project developer are required to monitor and report the project outcomes to ensure compliance with NMTC program requirements.

The timeline for the NMTC Application and Approval.

The timeline from application submission to final decision can vary, but typically ranges from several months to over a year. Factors influencing the timeline include the application's completeness, the demand for NMTC allocations, and the project's specific details. 

Conclusion

Navigating the NMTC application process requires careful preparation and a thorough understanding of the requirements. By following these steps and working closely with a company like True Mountain Capital, businesses and organizations can successfully leverage NMTC funding to drive community development and economic growth.

Warm regards,

Jeff Cotton
President & CEO
True Mountain Capital, LLC
jcotton@truemountaincapital.com
(901) 347-7276

By Jeff Cotton, CEO of True Mountain Capital

Dear Friends, Partners, and Future Collaborators,

Today marks a significant milestone for True Mountain Capital as we introduce ourselves to the New Markets Tax Credit (NMTC) marketplace.  Our intent with this blog is to communicate our companies’ goals as well as our commitment to fostering economic growth, sustainability, and resilience in underserved communities.

For those unfamiliar with the NMTC, it is a federal incentive program that attracts private investment to low-income urban neighborhoods and rural communities, providing a much-needed catalyst for revitalization. Since its inception in 2000, the NMTC has proven to be an invaluable tool for fostering economic development, generating $8 of private investment for every $1 of federal funding.  The NMTC program aligns perfectly with our mission at True Mountain Capital - to not only achieve outstanding financial returns but also to make a profound, positive impact on the world around us.

Our experience is what sets True Mountain Capital apart in the NMTC marketplace along with our unwavering commitment to integrity, transparency, and partnership.  True Mountain Capital's internal advisory team has over a decade of experience in the New Markets and Historic Tax Credit industry, with over $500 million in financing closed for approximately $750 million in project capitalization. We’ve also established technology leadership with our Summit™ software which is tailored to rapidly finding and managing projects thru the NMTC application process.

We believe in building long-term relationships with our stakeholders, based on mutual respect and shared values. Our goal is to be more than just a source of funding; we aim to be a valued partner in community development, working together with local leaders, businesses, and organizations to unlock potential and create lasting change.

As we embark on this journey, we invite you to join us. Whether you are an investor looking to make a meaningful impact, a community leader seeking innovative solutions, or simply someone passionate about driving positive change, we welcome your thoughts, ideas, and support. Together, we can turn the tide of economic disparity and build a brighter future for all.

Stay tuned for more updates, insights, and success stories from the field. The frontier of economic growth is wide open, and we are just getting started.

Thank you for your support and belief in our vision. Here’s to a future where every community can thrive.

Warm regards,

Jeff Cotton
President & CEO
True Mountain Capital, LLC
jcotton@truemountaincapital.com
(901) 347-7276