In the greater Cleveland area, a family-owned steel manufacturer and supplier wanted to expand their facility to meet the growing needs of the market. The project would allow the company to enter into a new market in the steel industry, create jobs in a highly distressed census tract and have environmental benefits including emission reduction measures, water recycling and increased recycled materials.
The company was seeking $30 million of New Markets Tax Credit (NMTC) allocation to support a $130 million expansion of the production facility. The high upfront cost of the project and current state of the steel industry meant that without NMTC financing, the project would not move forward.
Since the project was located in a highly distressed area and had the ability to retain and create jobs, NMTCs were identified as a qualified financing option for the facility expansion. Our team identified a solution to provide the capital needed to finance the expansion.
With assistance from Baker Tilly Capital, the project received a New Markets Tax Credit allocation totaling $32 million. The facility expansion is expected to retain all existing jobs and create 20 additional jobs in phase one. NMTC financing provided the capital needed to ensure the company will make this substantial investment in a highly distressed census tract, better services its existing customer base, expand business and continue to remain well positioned in the future.
For more information on this topic, or to learn how Baker Tilly Capital specialists can help, contact our team.
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