A cheese processing facility needed to expand their current facility in rural Tennessee to keep up with consumer and commercial customer demand across southeast United States. The company faced a major challenge in accessing sufficient capital to meet the extensive financing needs for the construction of a 55,000 square-foot expansion.
The New Market Tax Credit allocation was needed to support the financing of an expansion and equipment upgrade. The project would ensure the company could better serve its existing customer base, update processing equipment and expand business inevitably solving their inability to achieve growth.
New Markets Tax Credits were identified as a qualified option to help fill a financing gap with the development of the facility. Utilizing a community impact assessment, the job creation for local and regional community members along with adding value to the local economy in a severely distressed census tract made this project a qualified candidate.
The Baker Tilly Capital NMTC team assisted in the 55,000 square-foot expansion by successfully obtaining $30.5 million in NMTC allocation. This facility is expected to create 50 new jobs within the first year and positively impact the hundreds of family-owned farms that make up the co-operative in turn making the company a major processed cheese distribution hub in the southeast United States.
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