The team at Goldfarb & Lipman helps clients obtain Community Development Entity certification through the Community Development Financial Institutions (CDFI) Fund at the U.S. Department of Treasury as part of the New Markets Tax Credit (NMTC) program. To take advantage of NMTC resources, a project must apply through an investment intermediary known as a Community Development Entity (CDE). This is typically a nonprofit loan fund, which can be through a community development organization or private financial institution.
We represent CDEs in the formation and ongoing management of these vehicles that have a mission of serving or providing capital to low-income communities with low-interest loans to support beneficial commercial projects. We negotiate loans and investments in CDEs and help them to operate in compliance with accountability requirements to their communities by advising their governing or advisory boards. We also help private investors understand their rights and obligations when participating in these community investment vehicles.