Stonehenge Awarded $35 Million in New Markets Tax Credits

Stonehenge will continue investing in underserved and low-income communities to spur economic and social change

BATON ROUGE, La., Feb. 16, 2018 (GLOBE NEWSWIRE) -- Stonehenge Community Development LLC (Stonehenge) announced that it has been awarded a $35 million allocation in the federal New Markets Tax Credit (NMTC) program for the 2017 allocation round.

Stonehenge Community Development, a subsidiary of Stonehenge Capital and a leading participant in the federal NMTC program since 2003, will use this round of allocation to continue creating high-quality jobs and fostering development in economically distressed communities. The company will invest in businesses located in rural areas as well as communities overlooked or underserved by most investment firms. With each NMTC allocation, Stonehenge strives to prioritize investments that will result in a significant positive impact on minority communities.

“We are proud of our track record of creating opportunity, lifting marginalized and economically distressed communities and revitalizing neighborhoods throughout the country, all while generating new jobs and keeping many more in the United States,” said L’Quentus Thomas, Director of Stonehenge’s NMTC investments. “We look forward to continuing our mission of providing transformational capital to communities that need it the most.”

The U.S. Treasury’s Community Development Financial Institution Fund (CDFI), which administers the program, allocated $3.5 billion in tax credits to 73 community development entities for 2017. The program seeks to incentivize community development and economic growth by attracting private investment to underserved communities. According to a recent report published by the CDFI, the NMTC program generates over $8 of private investment for every $1 invested by the federal government.

In 2017, Stonehenge utilized New Markets Tax Credit allocation to finance a variety of projects, including Williams Sausage Company in Union City, Tennessee. Stonehenge provided $10 million of below market, non-conventional financing to assist the family-owned business build a new factory;  the new factory will help bring more than 200 manufacturing jobs to the distressed rural community at a time when the area had suffered substantial job displacement.

In downtown Toledo, Ohio, Stonehenge utilized $5 million of New Markets allocation to fund the construction of a nonprofit health care provider’s headquarters. ProMedica’s new central headquarters created 600 new jobs and brought 900 corporate employees to a single facility, bringing new economic vibrancy to the underserved community.

“We are excited to use this next round of NMTC allocation to provide meaningful and intentional economic and social opportunity to underserved communities,” Thomas said. “New Market Tax Credits help spur private investment in areas that are experiencing economic stagnation or decline, and we are proud to be a longtime participant in this solution-oriented program.”

With the announcement of the 2017 tax credit allocations, the total amount invested through the NMTC program since it began in 2002 is $54 billion.

Stonehenge Community Development is a subsidiary of Stonehenge Capital Company. More information about Stonehenge is available at http://www.stonehengecapital.com.

About Stonehenge Capital:

Since 1999, Stonehenge (www.stonehengecapital.com) has operated at the nexus of finance and community development. Stonehenge invests in underserved communities through community development programs in order to improve the economic wellness of the communities and residents. Today, the firm’s values remain unchanged and Stonehenge’s role as a catalyst in the success of individuals, businesses and communities is evident through the firm’s three core business lines: growth capital, tax credit services and community development. Stonehenge utilizes a variety of debt and equity financings to spur economic growth across the country, and has offices in Baton Rouge, New York, Dallas and other locations.

Contact: Lindsey Hendren
                    lindsey@thinkhubbell.com