2012 New Markets Tax Credit Summit: Wrap-Up

The Tuesday, May 1, 2012 opening of the Reznick Group 2012 NMTC Summit had a loud and clear message and Donna Gambrell, Director of the CDFI Fund, was at its helm. “The NMTC Program is a success story and I believe that it should be re-authorized,” said Director Gambrell who was the Summit’s keynote speaker.
Read More: Day 1 Morning Recap

Building on the positive energy and solution focused morning session of Reznick Group’s 2012 NMTC Summit, the afternoon session on Tuesday, May 1, 2012 offered a variety of resolutions for the NMTC questions on the minds of investors, CDEs and developers. 
Read More: Day 1 Afternoon Recap

The second day of Reznick Group’s 2012 NMTC Summit was packed with information for CDEs and borrowers. CDEs listened to thought leaders including Principals Scott Szeliga and Marshall Phillips offer analysis of Year-7 exit strategies and the important components of planning ahead in anticipation of the end of the NMTC compliance period. Borrowers heard insight on factors that are important to CDEs in determining lending decisions:

What are the Year-7 Issues for CDEs and How Should These Issues be Navigated?

• What type of expenses should CDEs expect to have after the compliance period ends and what is the ideal timeframe of unwinding?
• Under which circumstances is cancellation of debt (COD) income required to be recognized and what can be done to navigate deferral or offset of COD income?
• After the 7-year compliance period is exhausted, which circumstances deter an investor from exercising a put option?
• What happens when a default occurs on a leveraged loan and what are the planning strategies that can be effective in addressing this possibility in advance?

What are CDEs Looking for from Borrowers?

• Does the location of a project have a bearing on whether or not it can get NMTC funding from a CDE?
• Do CDEs use checklists to determine whether and which projects will receive NMTC funding?
• Is there an opportunity for developers to re-apply for funding after a CDE has turned down the first request for a loan?
• What are the sources that developers and owners should refer to in learning about what the CDE is looking for in a borrower or owner’s loan needs?

Reznick Group's 11th Annual New Markets Tax Credit Summit featured leading industry experts, including Reznick Group's NMTC practice professionals, who were on-hand to discuss a wide range of topics relevant to the latest strategies, emerging trends and expanding role of the NMTC Program.

Heartfelt thanks to all conference attendees, speakers, panelists, sponsors and exhibitors for making the 2012 NMTC Summit our most widely attended ever. We look forward to seeing you next year.

Please check this webpage and our NMTC webpage often for updated tools, information and Reznick Group thought leadership that can increase your chances for success with the NMTC Program.