Baton Rouge Firm Awarded $35 Million In Tax Credits To Invest In Companies In Underserved Communities
BATON ROUGE – A capital investment firm based in Baton Rouge has been awarded $35 million in federal tax credits to invest in companies that create high-quality jobs in underserved communities.
Stonehenge Community Development, a subsidiary of Stonehenge Capital, has financed a number of transformative projects in Louisiana and beyond. The $35 million will come from the federal New Markets Tax Credit (NMTC) program for the 2017 allocation round.
“Stonehenge will use its allocation to invest in operating companies located in the most highly-distressed communities to create high-quality jobs and to foster economic development in these areas,” said Lindsey Hendren, with Hubbell Communications, representing Stonehenge. “The company intends to invest a portion of the allocation in operating companies in non-metro areas and communities underserved by many investment companies.”
Stonehenge Community Development has participated in the federal NMTC program since 2003. With each allocation, the company aims to prioritize investments that will result in a significant positive impact on minority communities.
“We are excited to use this next round of NMTC allocation to provide meaningful and intentional economic and social opportunity to underserved communities,” said L’Quentus Thomas, director of Stonehenge’s NMTC investments. “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.”
In 2017, Stonehenge utilized the 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.
-ProMedica new central headquarters in downtown Toledo, Ohio. Stonehenge utilized $5 million of New Markets allocation to fund construction for the non-profit’s new headquarters. The new central headquarters created 600 new jobs and brought 900 corporate employees to a single facility, bringing new economic vibrancy to the underserved community.
In 2018, an allocated $3.5 billion in tax credits was awarded nationwide to 73 community development entities. Since 2002, the program tax credits have totaled $54 billion. According to a recent report, the program generates over $8 of private investment for every $1 invested by the federal government.
For more information about Stonehenge or to get more information about Stonehenge Community Development, visit http://www.stonehengecapital.com.
-By Jenny Peterson, Associate News Editor, Biz New Orleans