October 28, 2022
ST. LOUIS/NEW ORLEANS — Advantage Capital, a venture capital firm, small business lender and impact investor today announced a $35 million award allocation in the highly competitive federal New Markets Tax Credit (NMTC) program. Administered by the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund, the funding will spur economic growth and development in low-income urban and rural communities across the country.
Advantage Capital is one of 107 organizations, selected from a pool of 199 nationwide applicants, to receive an allocation. A winner in 14 of 18 allocation rounds, Advantage Capital’s total awards now stand at nearly $895 million since the program’s inception in 2001.
“We are thrilled to have been selected once again for this critical program,” said Steven Stull, President, Advantage Capital. “With this award, we are able to continue investing in companies that foster economic growth in distressed communities across the country. We know targeted investment in underserved areas creates and preserves jobs, which leads to community revitalization.”
“Twenty years ago, the Treasury Department announced the first New Markets Tax Credit awards, and for many economic development projects across the country since then, the New Markets Tax Credit has been a vitally important piece of the puzzle,” said Treasurer Chief Marilynn Malerba, said. “This program has created or retained hundreds of thousands of jobs and spurred economic growth in many low-income communities across our country. It is important that Congress sustain these investments over time by making the New Markets Tax Credit Program permanent.”
This announcement by the CDFI Fund brings the total amount awarded through the NMTC program to $71 billion.
For 30 years, Advantage Capital has invested in distressed communities and in the companies, ideas and people that advance opportunity. The firm has invested more than $3.8 billion in companies from a diverse array of industry sectors and has helped support more than 66,000 quality jobs in areas across the country.
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 $3.8 billion in companies from a diverse array of industry sectors and has helped support more than 66,000 jobs. Learn more at 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 17 allocation rounds and has made 1,354 awards totaling $66 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 $5.1 billion to CDFIs, community development organizations, and financial institutions through: the Bank Enterprise Award Program; the Capital Magnet Fund; the CDFI Rapid Response Program; the Community Development Financial Institutions Program, including the Healthy Food Financing Initiative; the Economic Mobility Corps; the Financial Education and Counseling Pilot Program; and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $66 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and guaranteed bonds for over $1.7 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.
Contacts
Advantage Capital
Joe Stosberg, Communications Manager
jstosberg@advantagecap.com
ACMC is an Investment Adviser registered with the U.S. Securities & Exchange Commission. Registration does not imply a certain level of skill or training. This release has been prepared for informational purposes and nothing herein should be construed as an offer of investment advisory services or as an offer to sell or a solicitation of an offer to purchase any securities or investment product. All offers of investment interests in any fund or investment vehicle managed directly or indirectly by Advantage Capital are and will be made only to qualified prospective investors pursuant to separate and definitive offering and subscription documents in accordance with applicable federal and state securities laws. Advantage Capital is an equal opportunity provider.
