FEDERAL
Federal Historic Tax Credits
www.cr.nps.gov/hps/tps/tax/brochure1.htm
*Organized jointly beneath National Parks Service (acting on behalf of US Dept. of Interior) & IRS (acting on behalf of US Dept. of Treasury.)
*Both entities work with each State’s Historic Preservation Officer (SHPO.)
*In Missouri, the SHPO is organized under the Dept. of Natural Resources, State Parks division.
*Allows for a 20% tax credit for a certified rehab of a certified historic structure ($1 of tax credit reduces income tax owed by $1 up to 20% of amount spent.)
*Can be combined with the Missouri Historic Tax Credit
Federal Empowerment Zone Benefits
www.stlouisezone.org/ezone2004.html
*Called the Greater STL Regional Empowerment Zone
*St. Louis’ period (Urban Round II) lasts from 12/31/1998 – 12/31/2009
*Provides financial (grants / bonds / leveraged investment) and technical assistance for a.) community development; b.) business & workforce development; c.) commercial & industrial development.
*One of these bonds financed $95 million for the Convention Center Hotel in December, 2000. Volume cap is $130 million through 12/31/2009.
New Market Tax Credits
www.cdfifund.gov/programs/programs.asp?programID=5
*Organized beneath US Dept. of Treasury
*Is one of 4 CDFI (Community Development Financial Institutions) Fund programs.
*Investors provide capital to a certified CDE (Community Development Entity) This CDE spends this money in low-income communities to help finance community projects, stimulate economic growth and create jobs. In exchange, an investor receives a federal income or “new market” tax credit from the CDE. This supply of NMTC totals $15 billion over its term from 2001-2007.
*In St. Louis, the St. Louis Development Corporation (SLDC) was granted a $52 million NMTC regional allocation but other entities within the region and nationally also have allocations available that can be applied to projects in Downtown St. Louis.
SBA 504 Loans:
www.sba.gov/financing/sbaloan/cdc504.html
*Organized beneath the U.S. Small Business Administration
*Provides growing businesses with long-term fixed-rate project financing for major fixed assets (such as land, buildings, machinery and equipment.)
*Financing is made up of 3 components: Private bank loan in a first-lien position (50% project costs) Community Development Company (CDC) loan in a subordinate-lien position (35-40%) and an applicant’s personal equity (10-15%.)
*For meeting SBA guidelines, the SBA guarantees borrower repayment to the CDC. .St. Louis’ CDC is SLDC..
SBA 7A Loans:
www.sba.gov/financing/sbaloan/7a.html
*Organized beneath the U.S. Small Business Administration
*Provides growing businesses with project financing for fixed assets (such as land, buildings, machinery and equipment), working capital and debt refinancing.
*Lenders are commercial banks who participate in the 7A Program who seek the SBA to guaranty a certain percentage of the bank’s loan.
*SBA will guaranty between 75% -85% of the bank’s loan to the borrower, if it is made according to SBA criteria.