Phoenix New Markets Program

The Phoenix New Markets program will offer commercial real estate and small business loans to Qualified Active Low-Income Community Businesses that are in or that relocate to low-income areas of Phoenix.

A qualified business is defined as any corporation (including a nonprofit corporation) or partnership if, for any taxable year, meets the following federal requirements:

1) The business or project is or will be located in a federally designated Low-Income Census Tract within the city of Phoenix: (Map of qualified areas.)

2) At least 50 percent of the total gross income is generated from the business or project located within a low-income community;

3) At least 40% of the business' physical assets (whether owned or leased) are located within the low-income community;

4) At least 40% of the employees' services are performed for the business in any low-income community;

5) Less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to collectibles (as defined in IRC §408 (m)(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of such business;

6) Less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity (as defined in IRC §1397C(e)) is attributable to nonqualified financial property; and

7) The business is not involved in the operation of the following: farming, financial services, golf courses, country clubs, massage parlors, hot tub facilities, suntan facilities, racetrack or other gambling facilities, development of or holding of intangibles for sale, or packaged liquor sales.

The goal is to improve the economic conditions of Phoenix's underserved communities. The primary beneficiaries will be residents and businesses located in these targeted areas. The recipients of Phoenix New Markets financing must demonstrate that their business or project provides one or more of the following community impacts and will need to report this information annually during the life of the loan:

Create jobs	Pay higher wages
Hire women and minorities	Provide training programs
Provide subcontracting opportunities for minority or woman owned businesses	Other as defined by the business

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City of Phoenix Community and Economic Development Department 200 West Washington Street, 20th Floor Phoenix, Arizona 85003	Call: 602.262.5040 Fax: 602.495.5097 TTY: 602.534.3476
Email: Click here to send

The city of Phoenix provides accessibility to information, participation, services and employment for persons with disabilities. This guide may be made available in the following alternative formats: large print, braille or audio-tape by calling (602) 534-CITY (2489).