Upstate Organization Receives $35 Million New Markets Tax Credit Allocation
June 24, 2015
GREENVILLE, SC – Greenville New Markets Opportunity II (GNMO II), a Community Development Entity (CDE) managed by taxadvantagegroup and Greenville Local Development Corporation in Greenville, S.C., has received a $35 million allocation of New Markets Tax Credits by the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund. The allocation will help finance select economic development projects in low-income communities within a 10-county service area in Upstate South Carolina including Abbeville, Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens, Spartanburg, and Union Counties.
With substantial support from U.S. Senators Tim Scott and Lindsey Graham and U.S. Congressman Trey Gowdy, GNMO II was the only CDE in South Carolina to receive an allocation in this year’s round of funding. The CDFI Fund released $3.512 billion in New Markets Tax Credit (NMTC) awards nationwide on June 15, 2015. The purpose of the federally funded NMTC program is to stimulate new investment in distressed communities that would not otherwise occur. In this award round 263 lenders applied for $19.9 billion in allocations and 76 were awarded the allotted $3.512 billion.
According to GNMO II Operating Officer and taxadvantagegroup (tag) President Tammy C. Propst, GNMO II will invest the $35 million with qualified borrowers in projects that support job creation, economic mobility, through participation in programs such as Apprenticeship CarolinaTM, and create improved health and wellness services throughout the 10-county Upstate, S.C. region. Organizations interested in applying for funds should contact Propst at [email protected] to determine eligibility requirements.
GNMO II was formed by tag and the non-profit GLDC in an effort to expand the geographic reach of its sister fund, GNMO. GNMO is an $89 million NMTC fund that, from 2008 to 2011, provided critical investment capital for a number of important real estate projects in low-income areas of Greenville, South Carolina. During a period of notoriously absent credit markets, GNMO and GNMO II stepped in and have become a lender of last resort for projects that were unable to source affordable capital elsewhere. Making community outcomes a priority in each funded transaction, the closed investments support 2,899 direct jobs, 1,015,108 square feet of new/renovated real estate, and over $249 million of total project costs. The NMTC investments include the NEXT Innovation Center, Sweet Street Manufacturing, and TDC/Greenfield Recycling, among others.
Upon learning of the U.S. Treasury’s most recent NMTC allocation, Propst said, “We are extremely appreciative of Senators Scott and Graham and Congressman Gowdy who ardently supported this allocation for GNMO II. They were instrumental in helping the decision makers at Treasury realize just how important GNMO II’s mission is to our local and national economy.” David Barnett, Chairman of GLDC, added, “Quality job creation with a focus on health and wellness services is still in great need across the Upstate, and GNMO II funds will be a catalyst for this. Upstate residents should know and appreciate just how hard their federal House and Senate members worked to ensure we received this funding.”
About GNMO II
Greenville New Markets Opportunity II, LLC (GNMO II) is a Community Development Entity under the provisions of the Community Development Financial Institutions Fund, whose mission is to serve and provide investment capital for qualified borrowers in low-income communities across the 10-counties in Upstate South Carolina. GNMO II affiliates are the Greenville Local Development Corporation and taxadvantagegroup.
About GLDC
Founded in 1979, Greenville Local Development Corporation (GLDC), a 501(c)(3) non-profit, was established by a group of committed community and business leaders in Greenville, SC to address obstacles faced by businesses and community based organizations in obtaining conventional financing. Since inception, GLDC has been working to provide financial assistance, real estate development coordination, and strategic guidance for economic development projects and business expansions.
About taxadvantagegroup
Headquartered in Greenville, S.C., taxadvantagegroup (tag) is one of the country’s most successful consulting firms specializing in New Markets Tax Credits, helping nonprofit and for profit organizations access capital and transform communities. Since 2004, tag has played an instrumental role in securing funding for over $985.2 million of community projects across the United States. In addition, tag manages $290 million of NMTC assets. The depth and breadth of services provided by tag is unsurpassed in the industry and includes New Markets Tax Credit Allocation Applications; NMTC Deployment; CDE Compliance and Asset Management; and Outreach Strategy Development. Each of these services helps tag achieve its mission of revitalizing low-income communities by providing capital and project management to organizations that create significant community impact.
