NEW ORLEANS--(BUSINESS WIRE)--Leading venture capital and small business finance firm Advantage Capital Partners has been awarded an $80 million allocation in the highly competitive federal New Markets Tax Credit program. This latest allocation brings the firm's total awards since the program began in 2002 to $524 million.
Through prior state and federal New Markets program allocations, Advantage Capital has invested more than $650 million in private capital into 147 businesses, which, in the aggregate, employ more than 8,000 people and have attracted more than $900 million in follow-on capital to support their growth.
Announcing the New Markets Tax Credit (NMTC) program allocation awards at a ceremony in New Orleans’ Federal City Town Center, U.S. Treasury Deputy Secretary Neal Wolin said, “For so many vital economic development projects across the country, the New Markets Tax Credit has been a critically important piece of the puzzle. This targeted tax credit has a strong record of spurring economic growth in low-income and distressed communities across our country.” The Deputy Secretary was joined by U.S. Senator Mary Landrieu, U.S. Representative Cedric Richmond, and Community Development Financial Institutions (CDFI) Fund Director Donna Gambrell at the announcement.
The NMTC program is administered by the U.S. Department of the 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 70 organizations selected out of a total of 314 that submitted applications for the ninth round of allocations in July 2011.
"For twenty years, our firm has consistently focused on fostering entrepreneurs and creating a significant positive impact in the communities where we invest. We are honored to have been selected as an NMTC allocatee once again, based on the merits of our track record. We will continue to deploy private capital where it is needed most, enabling small businesses to create and retain jobs, revitalizing neighborhoods, and driving economic recovery,” said Steven T. Stull, president of Advantage Capital Partners.
The Advantage Capital Community Development Fund will focus its newly awarded New Markets allocation in geographic areas in which the firm has previously invested, including both urban and rural communities, and will also consider opportunities to serve distressed communities in additional markets.
Advantage Capital's allocation was among $3.6 billion in total awards announced this week by the Department of the Treasury. Since the program's inception, the Treasury has awarded more than $33 billion in allocations.
About Advantage Capital Partners
Advantage Capital Partners is a leading venture capital and small business finance firm focused on 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 $1.6 billion in private 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 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 $33 billion in allocations.