The Sovereign Community Development Company (SCDC) will focus its NMTC investments on business, real estate (mixed-use, office, industrial, retail, historic, and community facilities) borrowers, and CDFIs with CDE designations. The allocation will allow SCDC to make investments in the forms of loans with more flexible terms and conditions, including reduced interest rates of 200 to 400 basis points below market; debt coverage ratio floors of as low as 1.10; loan-to-value limits of as high as 90%; no origination fees, and more flexible credit standards such as lower credit scoring thresholds. SCDC has also designed a product to extend the benefits of the NMTC beyond the seven year compliance period.