The current interest rate for January of 2007 is:

7.1%

 
Interest Rates on NMTC Loans
The NMTC interest rate is fixed just prior to loan funding for the first seven years at the seven-year treasury rate plus 2.4%. The rate is reset at the seven-year loan anniversary based on the ten-year treasury rate plus 3%, and fixed for the remaining 18 years of the term.

  
Historic NMTC Rates
Click here to see a printable chart of NMTC interest rates for the last 10 years, compared to typical commercial variable rate financing.

 
The NMTC Loan Term
NMTC Loans are 25-year fully amortizing, long-term loans. The maximum advance rate or Loan-to-Value is 90%. Higher down payments or equity may be required based on project type and credit quality. NMTC loans can be up to $2.5 million, so projects of up to approximately $10 million make good NMTC candidates.

 

NMTC Loans have the following Loan Fees:
      Loan Origination fee:          2%
      Legal/closing costs:            $1,000
      Total Loan fees:                 2% + $1,000

 

Note that these fees are only charged on the NMTC portion of the loan. Contact the participating Bank for information on the fees on the bank portion of the loan.

 

Prepayment Penalty

NMTC loans have a formula pre-payment penalty for the first seven years, and no partial prepayments are allowed. There is no prepayment penalty after 7 years. Please see us for details on the prepayment penalty.