The Community Development Financial Institutions Fund incentivizes community development and economic growth through the new markets tax credit (NMTC). Small business loan funds are one way community development entities (CDEs) can invest in small businesses in amounts up to $4 million. In today’s episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Greg Clements, CPA, discuss the pros and cons of small business loan funds for CDEs, lenders, borrowers and more. They discuss the reasons a CDE might use a loan fund rather than a series of loans as well as strategies for implementing the funds. They also discuss how a CDE might structure loan funds with the ability to make them into evergreen funds.