What is the minimum loan term for permanent financing? When can the loan be renewed and will the financial institution receive credit a second time if the loan is renewed?
There is no minimum loan term required for a qualified loan or qualified low-rate loan to be eligible for the community investment tax credit. Loan renewals will not qualify for a second round of credits unless a new application is submitted and approved by THDA and the Department of Revenue. As a general rule, renewal applications will only be approved if it is determined that additional eligible activities are being supported by the renewed funding. 4. Is it necessary for a financial institution to document its cost of funds in order to take advantage of the credit? For example, if the bank is able to obtain below-market funds, will they receive credit for extending a below market rate loan or investment to a nonprofit? It is not necessary for a financial institution to document its cost of funds in order to take advantage of the community investment tax credit.