SDS Advantage:
CDE Services
Comprehensive NMTC Services
SDS Advantage >> CDE Services
Everything You Need to Manage NMTC - All in One Place
SDS Advantage, since 2010, has served as a comprehensive finance platform servicing all of SDS’s funds and third-party Community Development Entity (CDE) clients. Our team of professional accountants, asset managers, compliance officers, and financial-closing specialists are vigilant at ensuring we execute at the highest-level of expectations for our clients. Our goal is to manage the complexity and minutia of all the finance and back-office operations on behalf of our clients. We do not believe in black boxes; we have created a glass box of transparency so you know what we know, but ensure that we are sweating the details…so you do not have to. SDS Advantage manages over $2 billion in allocation today.
20+ Years
Managing Finance and Back-Office Operations
$2 Billion+
CDE NMTC Portfolio Managed to Date
>80%
NMTC Application Success Rate
CDE SERVICES
We offer comprehensive services from application writing, deployment, asset management, to exit:
NMTC APPLICATION SERVICES
SDS Advantage has 20+ years of experience in writing NMTC applications. Our success rate for our CDE – National New Markets Fund– is over 80%. We know what it takes to have a successful deployment and application process that increases your chances for being awarded an allocation. The new permanent nature of the NMTC program is attracting new entrants and increased competition, making it more important than ever to have an expert partner who knows how to position your application for success.
- Recommend overall application strategy
- Draft and finalize NMTC application
- Position your track record to help you receive maximum points
- Gather and organize organizations track record and portfolio data
- Prepare and finalize application tables
- Upload and submit NMTC application in AMIS
DEPLOYMENT SERVICES
- Spearhead originations and investment selection
- Conduct initial due diligence to determine eligibility
- Present best transaction structure
- Recommend appropriate allocation size
- Analyze project budget and financials
- Lead and manage transaction closings
- Negotiate with other transaction parties
UNDERWRITING
- Conduct comprehensive due diligence services
- Analyze company, financial, and programmatic information
- Prepare underwriting report outlining key risks and mitigations
- Present underwriting report to investment committee
ASSET MANAGEMENT
- Review pre-closing documents
- Conduct QALICB orientation and training
- Prepare asset management plan
- Review construction draws
- Perform site visits and prepare reports
- Conduct QALICB outreach, reporting, and monitoring
- Monitor financial and compliance status
- Analyze fiscal health (budget versus actual and NQFP)
- Facilitate project data collection as requested or required
- Monitor covenant requirements
- Report project status periodically
COMPLIANCE
These services begin as funding commences:
- Gather and set up project information for the 7-year compliance period
- Maintain a cloud-based hub for each project
- Prepare IRS Form 8874-A
- Prepare and submit AMIS reports
- Facilitate advisory board low-income representation
- Submit investor reporting
- Monitor annual QALICB NMTC compliance status
- Track corporate filings
- Prepare and submit QEI closeout report
- Facilitate CDFI Fund’s requests
- Dissolve Sub-CDE upon exit
FINANCIAL REPORTING AND ACCOUNTING
- Prepare quarterly financials
- Compile audit package
- Facilitate audit and tax process
- Analyze distribution to ensure compliance
LOAN SERVICING
- Produce invoicing and collection
- Review compliance period payment flows
- Automate funds flow (if possible)
- Align process with all parties
- Maintain platform access for authorized parties
- Manage and execute ongoing loan servicing
EXITS
- Facilitate coordination with all parties
- Review all legal documents
- Prepare comprehensive exit checklist
- Reconcile exit cash flows
*Client-provided data
