St. Louis-based Advantage Capital Secures $60 Million Allocation in New Markets Tax Credit Program

July 28, 2020

Venture capital firm and small business lender Advantage Capital today announced a $60 million allocation award in the highly competitive federal New Markets Tax Credit (NMTC) program. U.S. Senator Roy Blunt (MO), who has led bipartisan efforts to extend the program, welcomed the announcement from the U.S. Treasury.

“The New Markets Tax Credit program is a critical tool for driving new investment in the areas that need it the most, benefitting families, local economies and communities,” said Senator Blunt.  “In Missouri, and across the nation, we have seen how the NMTC program has helped create new jobs, expand businesses and economic opportunities, extend access to social services and community facilities, and revitalize neighborhoods.”

Advantage Capital is one of 76 organizations, selected from a pool of 206 nationwide applicants, to receive an allocation. With its debt investment and impact teams headquartered in St. Louis, the firm has more than 40 local employees. In conjunction with the NMTC program, it has helped create more than 30,000 permanent jobs in low-income communities across Missouri and the country.

The impact of the NMTC program in Missouri is significant. The state ranks number six in per capita NMTC investment, with investments in businesses and economic revitalization projects in 40 different municipalities across the state. The program has generated in excess of 42,000 jobs for the people of Missouri—helping families, individuals and communities prosper.

“We are thrilled to receive an allocation in this latest funding round,” said Sandra M. Moore, chief impact officer and managing director in Advantage Capital’s St. Louis office. “We know that stabilizing and anchoring businesses in underserved communities, and providing the capital that can help them grow and create good jobs, has an outsized impact on the entire community. As we think about the enormity of COVID-19’s financial effect, we know that targeted, incentivized investment with the New Markets Tax Credit program can help shore up businesses, workers and communities, fostering economic growth and revitalization.”

Senator Blunt, along with U.S. Senator Ben Cardin (Md), introduced legislation in 2019 to make the NMTC program permanent. In December, Senators Blunt and Cardin secured a one-year extension with a $1.5 billion allocation increase. The program was originally authorized in 2000 as part of the Community Renewal Tax Relief Act, and for almost 20 years, it has helped to spur economic growth in underserved communities.  Through the end of fiscal year 2018, NMTC program award recipients have invested nearly $52.5 billion in low-income communities and businesses, supporting more than 836,000 jobs.

About Advantage Capital

Advantage Capital provides financing to established and emerging companies located in communities underserved by conventional sources of capital. Since 1992, the firm has invested more than $3 billion in companies from a diverse array of industry sectors and has helped support more than 50,000 jobs. Learn more at www.advantagecap.com, or via Twitter or LinkedIn.

About the New Markets Tax Credit Program

The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. Since the inception of the NMTC Program, the CDFI Fund has completed 16 allocation rounds and has made 1,254 awards totaling $61 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone.

To learn more about the New Markets Tax Credit Program, please view the program Fact Sheet or visit www.cdfifund.gov/nmtc.

About the CDFI Fund

Since its creation in 1994, the CDFI Fund has awarded more than $3.5 billion to CDFIs, community development organizations, and financial institutions through: the Bank Enterprise Award Program; the Capital Magnet Fund; the Community Development Financial Institutions Program, including the Healthy Food Financing Initiative; the Financial Education and Counseling Pilot Program; and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $61 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and guaranteed bonds in the amount of $1.6 billion through the CDFI Bond Guarantee Program.

To learn more about the CDFI Fund and its programs, please view the Fact Sheet or visit the CDFI Fund’s website at www.cdfifund.gov.

Advantage Capital is an investment adviser registered under the Investment Advisers Act of 1940. Registration does not imply a certain level of skill or training. The information in this release is not intended to be an advertisement concerning investment advisory services or an offer to buy or sell securities of any type. Advantage Capital is an equal opportunity lender.

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