MINIMUM QUALIFICATIONS

If your business or project can meet the minimum regulatory requirements of the NMTC Program definition of a Qualified Active Low Income Community Business (QALICB), you could potentially qualify for a loan that has better terms than with a traditional lender.

Low-Income Community Census Tract (LIC)– The business is or will be located in a federally designated Low-Income Community Census Tract; if you choose to locate or expand your business in one of the census tracts that shows a higher economically distressed area, your project may receive higher priority consideration. The physical address of your business or project will be used to verify eligibility.

To find out if a business is located within a specific incentive area, such as a New Markets area, an Enterprise Zone, Enterprise Community, or a Foreign Trade Zone, visit the Phoenix Economic Development Incentive Zone Locator. This online tool can help verify if a particular location is eligible for various incentives as well as provide valuable information regarding the location.

Employees – 40% or more of your employees work and provide services from your business or project in a LIC. To verify this test, you will be asked to provide payroll documentation.

Tangible Assets – 40% or more of your tangible assets of your business or project is located in the LIC. To verify this test, you will be asked to provide documentation of the total tangible assets and their location.

Gross Income – 50% or more of the gross revenue generated from your business is generated from your business or project located in the LIC.

Collectibles– Less than 5% of the average aggregate basis of the property located in the LIC is attributable to collectibles.

Nonqualified Financial Property– Less than 5% of the average aggregate basis of the property located in the LIC is attributable to nonqualified financial property (ie. providing banking services).

*If more than 50% of your employees work and provide services in a LIC and if more than 50% of your tangible assets are located in a LIC, then the gross revenue test is deemed satisfied.

BUSINESS ACTIVITIES THAT ARE PROHIBITED UNDER THE NMTC PROGRAM INCLUDE:

• Raw Land (No Improvements)
• Farming
• Rental Housing*
• Gambling
• Golf Courses
• Alcohol Sales
• Suntan Facilities & Massage Parlors
• Development or Holding of Intangibles for Sale or License**

*PCDIC understands the importance of the right housing mix in improving Phoenix's communities. At this time, PCDIC will not pursue funding for or investments in mixed-use or for-sale housing projects. However, if you have a housing project that includes a commercial component, your project may still qualify for financial assistance only on the commercial piece.

**PCDIC has adopted Lending Guidelines for Bioscience or Technology Industries to address the intangibles test.

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