by admin | April 28, 2013 8:10 pm
Advantage Capital Partners Awarded $75 Million Allocation in New Markets Tax Credit Program
NMTC program attracts private investment capital to economically distressed communities, fosters businesses and promotes job growth
NEW ORLEANS, April 24, 2013 – Leading venture capital and small business finance firm Advantage Capital Partners has been awarded a $75 million allocation in the highly competitive federal New Markets Tax Credit (NMTC) program. This latest allocation brings the firm’s total awards since the program began in 2002 to $599 million, and maintains the investment firm’s leadership role as a top program participant nationwide.
Through prior state and federal New Markets program allocations, Advantage Capital has invested more than $850 million in private capital into 175 businesses, which, in the aggregate, employ 11,550 people and have attracted $1.4 billion in follow-on capital to support their growth.
The NMTC program is administered by the U.S. Department of Treasury. It is designed to stimulate economic growth and job creation in low-income communities by providing much-needed investment capital, financial counseling and other services. Awardees are selected after a highly competitive and rigorous government review process. Advantage Capital was one of 85 organizations selected out of a total of 282 that submitted applications for the tenth round of allocations in September 2012.
“For more than two decades, our firm has identified and fostered promising entrepreneurs and created a significant positive impact in the communities where we invest. Over the ten years that we have been associated with the New Markets program, we have pioneered innovative ways to deploy private capital into underserved communities, enabling small businesses to create and retain jobs, revitalizing neighborhoods, and driving economic recovery. We are honored to have once again been selected as an NMTC participant based on our track record, our capacity, and our vision for the future,” said Steven T. Stull, president of Advantage Capital Partners.
The Advantage Capital Community Development Fund will use its NMTC allocation to make investments in operating businesses located in geographic areas in which the firm has previously invested, including both urban and rural communities, and will also focus on opportunities in distressed communities located in underserved states.
About Advantage Capital Partners
Advantage Capital Partners is a leading venture capital and small business finance firm focused on providing growth capital and other investments supporting state and local economic development efforts. The firm’s typical forms of investment include venture, expansion equity, mezzanine financing, senior and subordinated loans and government-guaranteed lending. With offices and partners in New Orleans, St. Louis, Chicago and other U.S. cities, Advantage Capital has invested more than $1.4 billion since 1992. The firm invests in small businesses located in geographic areas underserved by traditional capital and in companies in a wide range of industries.
About the federal New Markets Tax Credit program
The federal New Markets Tax Credit program, administered by the U.S. Department of the Treasury, encourages private-sector investment in economically distressed communities through tax incentives. In a highly competitive allocation procedure, the Treasury Department awards the tax credits based on applications submitted each round. Applications are evaluated based on the submitting organization’s experience investing capital; experience in and strategy for raising capital; strength and depth of management team; and expected community impact of the business plan. Since the program’s inception, the Treasury has awarded more than $36.5 billion in allocations.
Source URL: http://www.advantagecap.com/advantage-capital-partners-awarded-75-million-allocation-in-new-markets-tax-credit-program/
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