NMTC: An Untapped Strategy for Springfield’s Economic Growth (Sponsored Content)

Today’s economic development is driven by collaboration. In Springfield, public-private partnerships, community investment, and innovative financing strategies are helping create places where businesses can grow, people want to live and work, and transformational projects can take shape.

One of the most effective—and underutilized—tools supporting that work is the New Markets Tax Credits (NMTC) Program.

Created to stimulate investment and job growth in low-income census tracts, NMTCs direct capital to communities that have historically had less access to it. Qualifying projects can include healthcare facilities, manufacturing expansions, nonprofit organizations, community facilities, and other developments that create jobs or provide essential services.

In 2025, federal legislation made NMTCs permanent. That new certainty allows businesses, lenders, investors, and advisors to plan with confidence, knowing a minimum annual allocation of $5 billion in tax credits will continue to be available.

At its core, the NMTC program encourages private investment in qualifying projects. Investors receive federal tax credits equal to 39 percent of the total allocation, and the equity generated from those credits is then invested back into eligible developments.

That capital can help bridge funding gaps, support down payments, fund expansions, or reduce overall borrowing needs. For larger projects, NMTC financing can often contribute equity equal to roughly 20 to 25 percent of total development costs. Smaller projects may benefit through improved loan structures, including below-market financing or longer interest-only periods. Either way, the result is greater cash flow flexibility and improved project feasibility.

NMTCs can also be layered with SBA loans and other incentives, making them a valuable addition to a broader financing strategy.

Yet despite its potential for our community, the program remains virtually untapped in our market. At the time of writing, only a few projects in southwest Missouri have utilized NMTC financing.

That’s why awareness—and expertise—matter.

Whether you’re expanding a healthcare facility, growing a manufacturing operation, or investing in a community-focused project, NMTCs may provide access to capital that can help move your plans forward. The first step is finding an expert who can evaluate eligibility, estimate potential benefits, structure financing, and coordinate the many stakeholders involved.

As the program gains traction, partners such as OakStar are helping bring together the specialized expertise required to navigate these opportunities. That can mean aligning NMTC financing with SBA lending, merchant services, and other financial resources to create a comprehensive growth strategy. By connecting the right partners, capital sources, and advisory support, southwest Missouri-based projects become more feasible, businesses are better positioned to expand, and our communities can realize lasting economic benefits.