Leverage Loans

In addition to making investments utilizing New Markets Tax Credits, TruFund occasionally makes loans directly into NMTC structures alongside equity investors. A leverage loan is not a direct loan to the project, but a loan to an investment fund typically created for the transaction. In order to leverage the tax credits, the leverage loan and the tax credit investment are pooled in the investment fund before the qualified equity investment is made.

Loans are evaluated in accordance with TruFund underwriting guidelines and the particular NMTC structuring requirements of each transaction. An example of this type of investment is the Pitkin Theater project in Brooklyn, NY, where TruFund Financial made a $2MM loan as part of a $24.8MM senior participation loan.

Contact us at Info@TruFund.org or call us toll-free at: (212) 204-1303 for additional information about our Leverage Loan Program.