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How to Apply: Underwriting Criteria

To be eligible for CEI Capital Management’s flexible New Market Tax Credit capital, the proposed project must meet several minimum requirements:

I. Triple-Bottom-Line Criteria

CEI Capital Management will only fund projects that support the mission of CEI (our Parent company) to help create economically and environmentally healthy communities in which all people, especially those with low incomes, can reach their full potential. Projects must also adhere to CEI’s Triple-E or Triple-Bottom-Line underwriting criteria by contributing positively to the economic, social, and environmental well-being of their communities.

II. Service Area or Location

All businesses must either be located in a Federally-defined low-income census tract or the business1 must serve low-income individuals2 in one of the following three ways:

  1. 50% of the business’s total gross income for any taxable year must be derived from sales, rentals, services or other transactions with low-income individuals;
  2. 40% of the business’s employees must be low income individuals at time of hire; or
  3. 50% of the business must be owned by a low-income individual. Outside of our home state of Maine, CEI Capital Management targets our investments to rural or non-metropolitan communities.

III. Permitted Business

Your business cannot be in one of the following prohibited industries:

  • Private or commercial golf courses;
  • Country clubs;
  • Massage parlors;
  • Hot Tub facilities;
  • Suntan facilities;
  • Racetrack or other facility used for gambling;
  • A store whose principle business is the sale of alcoholic beverages for consumption off-premises;
  • Farms; or
  • Any trade or business consisting predominantly of the development or holding of intangibles for sale or license.

Additionally, less than 80% of gross income must come from rental of dwelling units, and a portion of any residential rental units may be required to be reserved for low-income residents.

For questions regarding eligibility, contact the CEI Capital Management Investment Team:

All submissions are subject to review and additional due diligence materials may be required, adherence to these criteria is not a guarantee of financing.

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1. The business must generally be located in a census tract for which the median family income does not exceed 120% of the applicable area median family income.
2. Individuals whose family income is not more than 80% of the area median family income.