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SDS Advantage

NMTC Compliance, Reporting
and Accounting Services

Making the Complex, Simple

SDS Advantage, since 2010, has served as a comprehensive finance platform servicing all of SDS’s funds and third-party clients. Our team of professional accountants and asset managers 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, so that they can maintain a deep focus on their investment activities and deploying capital. The SDS Advantage platform administers over $850 million for our clients, covering 72 total investments.

NMTC
COMPLIANCE

Understanding the nuances of NMTC compliance and executing – SDS makes sure you are covered.

NMTC
REPORTING

From AMIS reporting to investor reporting, SDS takes these complexities off your hands so you can focus on investing.

NMTC
ACCOUNTING

SDS seamlessly works with the borrowers, our clients, and auditors to undertake and ensure all your ac-counting needs are met.

ASSET
MANAGEMENT

Overseeing the asset management process – from project level construction and operations – SDS provides you deeper insight into the lifecycle of your investment.

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CAHEC

“We feel like SDS Advantage is a true partner. They are always there for us – they are not just a vendor. The SDS Advantage team often brings us answers before we’ve even thought of the question.”

– Brian Oxford, Sr. NMTC Manager, CAHEC

Core Services

FINANCIAL REPORTING & ACCOUNTING

We provide the following services:

  • Quarterly financials
  • Audit package
  • Audit & tax facilitation
  • Invoicing & collection
  • Distribution analysis
  • Cash flow analysis

COMPLIANCE

These services begin as funding commences:

  • IRS form 8874
  • AMIS QEI reporting
  • AMIS annual reporting*
  • Investor reporting and certification
  • Advisory board validation
  • QALICB outreach, reporting, and monitoring
  • Corporate filings tracking
  • QEI closeout report
  • CDFI Fund’s request facilitation
  • Sub-CDE dissolution

CLIENT SUMMARY REPORTING

Weekly/monthly/quarterly meetings to provide status updates for:

  • Recapture risk indicators
  • NOI analysis
  • Substantially-All calculation
  • QALICB updates
  • Financial reporting
  • Advisory board
  • Corporate filing
  • Agency reporting
  • Investor reporting

*client-provided data

PLATFORM MAINTENANCE

We maintain a cloud-based hub for each project containing:

  • CDE core documents
  • Financial reporting
  • Annual audit & taxes
  • QALICB required submittals
  • CDE/Sub-CDE submittals
  • Standardized filing system
  • Consistent naming protocol

PRE-CLOSING SERVICES

We offer a comprehensive review and analysis of critical documents prior to each project closing:

  • QALICB analysis
  • Project allocation analysis
  • Financial model review
  • Operational review
  • Operating agreement

Core documents review includes:

  • Financial model
  • Fee & services agreement
  • Loan agreement & promissory notes
  • Community benefits agreement
  • Other critical documents

SYSTEM & DATA SET-UP

Gathering and setting up the project information for the 7-year compliance period:

  • Required QALICB and CDE deliverables
  • 7-year schedules
  • Cloud platform set-up
  • Training & orientation
  • AMIS reporting package*

Additional Services

UNDERWRITING

  • Comprehensive due diligence services
  • Company, financial, and programmatic analysis
  • Underwriting report, outlining key risks and mitigations
  • Underwriting presentation

ONGOING SERVICING & COLLECTION

  • Compliance period payment flows confirmation
  • Servicing system set-up
  • Funds flow automation (if possible)
  • Process outline aligned with all parties
  • Platform accessible to authorized parties
  • Ongoing loan servicing management & execution
  • Invoicing, collections & payment confirmations

ASSET MANAGEMENT

  • Pre-closing document review
  • QALICB orientation & training
  • Construction draw facilitation
  • Asset management plan preparation
  • Site visits & reports
  • Annual QALICB NMTC compliance status
  • Financial & compliance monitoring
  • Fiscal health analysis (budget vs actual & NQFP)
  • Project data collection facilitation as requested/required
  • Covenant requirement monitoring
  • Quarterly project status reporting

EXITS

  • Facilitation and coordination with all parties
  • Review of all legal documents
  • Comprehensive exit checklist
  • Exit cash reconciliations
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