PIPELINE PARTNER - Community Reinvestment Associates, LLC
What do we do?
On a contingent fee basis, we bridge financial short-falls, including:
- identifying and securing nontraditional community and economic development financing and subsidies for rural for-profit and non-profit borrowers in need of financing for the construction, renovation or expansion of health care and urgent care facilities; the purchase, retrofitting and leasing of equipment; and working capital; and
- particularly focusing on federal New Markets Tax Credit Financing, which, depending on the sizing of the financing, generally provides a borrower with either (a) a Forgivable Loan (which only requires approximate 1.5% interest-only payments during the 7-year compliance period); or (b) a Non-Forgivable Loan (which only requires below-market interest-only payments (generally above 1.5% but still well below market rates) during the 7-year compliance period and maturity date up to 40 years (well beyond any secured asset's useful life)).
Who are we?
We are national boutique financing consulting firm which has facilitated over $4.2 billion of community and economic development financings, including those involving new markets tax credits (in the aggregate amount of $1.1 billion); low-income housing tax credits; opportunity zone financing; USDA Programs; CDFI Programs; taxable bonds; tax-exempt bonds; various federal, state and local subsidies; and traditional debt, equity, and donations.
What are the benefits of NMTC Financing?
Generally, the benefits of the NMTC Program (whether in the form of the Forgivable Loan or the Non-Forgivable Loan) include:
- gap financing;
- with approximate 1.5% interest-only payments during the Compliance Period
- subordination to other creditors;
- nontraditional and favorable terms (such as nontraditional collateral; debt with equity features; and limiting guarantees);
- flexible underwriting criteria (such as not requiring a significant operational history; loan-to-values far in excess of 100%; lower debt service coverage ratios; and minimal equity requirements);
- ability to obtain other financing;
- ability to “leverage” other sources of financing for a multiplier economic benefit;
- “softer” foreclosure and enforcement rights if there is a default;
- in the case of the Forgivable Loan, forgiveness at the end of the 7-year compliance period;
- in the case of the Non-Forgivable Loan, a maturity date up to 40 years (beyond any secured asset’s useful life); and
- if applicable, state NMTC financing (which provides an additional subsidy).
How are we different from our competitors?
- Our fees are contingent upon our securing financing and/or subsidies for our clients.
- We have over 25 years of finance, legal, accounting and tax experience in community and economic development; therefore, we “quarterback” the entire financing.
- We are able to use our client’s other sources of financing to create an economic multiplier effect.
- We grew up in rural communities and understand the first-hand needs of rural communities.
What do we offer NRHA members?
- Our contingent fee is reduced by 33%.
Learn more and contact us . . .
Scott R. Sunagel
Visit us at: https://crassociates-llc.com/rural-subsidies/