Three Roots Capital receives $50 million from New Markets Tax Credits program
This marks Three Roots' second allocation in back-to-back award cycles.
Three Roots Capital, an investment firm focused on economic and social impacts in low-income geographies, is pleased to announce it received $50 million from the New Markets Tax Credit (NMTC) Program. This is the firm’s second allocation in back-to-back award cycles. (Read teknovation.biz announcement from the first award cycle).
The NMTC program helps economically distressed communities attract private investment capital. The funds are awarded to the Community
Development Entities (CDEs) through a competitive application process. CDEs are financial intermediaries that help manage the flow of investment money from an investor to a qualified business located in a low-income community.
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) recently awarded $5 billion in NMTCs to 104 CDEs nationwide. This highly competitive program saw 196 applicants request $14.8 billion of credits.
According to a press release, Three Roots Capital’s NMTC investment strategy is to provide flexible qualified low-income community investment (QLICI) loans to manufacturing and office projects that create quality, accessible jobs throughout highly distressed communities in the Appalachian and Delta regions.
“NMTCs are among the most efficient and effective economic development tools ever created. Winning these credits lets us support job-creating companies in some of the most distressed areas we serve,” said Chris Miller, Chief Financial Officer of Three Roots Capital. “Receiving back-to-back allocations of NMTCs is uncommon. Our team worked hard to deploy our prior year’s award and to write a compelling application for additional credits. Three Roots Capital is very encouraged and honored to be part of this exceptional group of awardees.”
Three Roots Capital is one of three awardees based in Tennessee. With its previous $45 million allocation, the company made two $22.5 million investments in rural manufacturers: Fitzgerald Trailers in Byrdstown, TN, and Hopkinsville, KY; and Quality Metal Stamping in Henderson, TN. Read more about those allocations here.
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