Advantage Capital receives $70 million New Markets Tax Credit program allocation
NEW ORLEANS, November 2, 2009 – Advantage Capital Partners has been awarded a $70 million allocation in the seventh round of the federal New Markets Tax Credit program. Advantage Capital was one of 99 organizations selected this round out of a total of 249 that applied earlier this year. This latest allocation brings the firm’s total awards to $388 million.
U.S. Treasury Secretary Timothy Geithner made the allocation announcement during a ceremony at a job training center in Chicago. The New Markets Tax Credit program is administered by the U.S. Department of the Treasury and is designed to stimulate economic growth and job creation in low-income neighborhoods by providing much-needed investment capital, financial counseling and other services.
“We’re pleased to yet again play a role in the successful New Markets program and invest in talented entrepreneurs and innovative small businesses across the country,” said Steven T. Stull, president of Advantage Capital. “This latest allocation round will help new and existing businesses, create and retain jobs, increase economic self-sufficiency and strengthen local economies, something our country desperately needs.”
The Advantage Capital Community Development Fund will focus its New Markets investments in cities in which the firm has invested before and will also consider opportunities to serve distressed communities in other markets.
In attending the Chicago awards announcement, Donna J. Gambrell, Director of Treasury’s CDFI fund said the New Markets Tax Credit Program is helping to stimulate economic growth, create jobs and bringing new opportunities to Americans most in need.”
Advantage Capital’s allocation was among $5 billion in total awards announced this week by the Department of the Treasury. Since the program’s inception in 2000, the Treasury has awarded $26 billion in allocations. The program is being considered for an extension of 5 years.
About Advantage Capital Partners
Advantage Capital Partners is a leading venture capital and small business finance firm focused on early stage companies and other investments supporting state and local economic development efforts. With offices and partners in New Orleans, St. Louis, Austin and other U.S. cities, Advantage Capital has raised more than $1.1 billion in capital since 1992 and invested in companies located in geographic areas underserved by traditional venture capital.
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 year. Applications are evaluated based on the submitting organization’s experience investing in capital; experience in and strategy for raising capital; strength and depth of management team; and expected community impact of the business plan.