Latest news with #NMTCs
Yahoo
3 days ago
- Business
- Yahoo
New rural investment fund is leveraging NMTCs to deploy $45 million for health care, affordable energy and quality jobs
CHICAGO, June 5, 2025 /PRNewswire/ -- A new investment fund is set to fuel health care services, affordable electricity, and good jobs in rural and tribal areas, offering financing that helps address the multiplying impacts of poverty on the well-being of families and communities. The Morgan Stanley Rural NMTC Fund is leveraging federal New Markets Tax Credits (NMTCs) to invest $45 million in high-impact development projects. A collaboration between Morgan Stanley and Broadstreet Impact Services, the fund will deploy affordable capital to fill critical gaps in rural and tribal communities. "The fund is designed to fuel economic opportunity and improve overall health in communities that may otherwise struggle to attract the capital they need to build and grow," said Joy Hoffmann, Managing Director with Morgan Stanley, which capitalized the fund. "It is an investment strategy that we hope will have a long-term impact on reducing poverty, helping support rural businesses and community facilities while at the same time helping expand family incomes and wealth." The fund is focusing on projects being developed in nonmetro census tracts with high rates of unemployment and low median incomes. To qualify for investment, projects will address health care, electrification needs—including solar and other clean energy projects—community services, or workforce development programs and offer jobs that pay a living wage with benefits. Jobs must be accessible to a wide range of workers, including those who might otherwise face employment barriers, like people with disabilities, those without a college degree, and individuals rebounding from long-term unemployment. All told, the fund is designed to amplify opportunities in rural communities, while addressing persistent challenges. It prioritizes health investments, for example, because hospitals are often the economic drivers of rural communities, with every $1.00 they spend delivering $2.30 in additional economic activity. Hundreds of rural hospitals have either shut their doors or are at risk of doing so, eliminating good-paying jobs and local business income in the process. "With this fund, we are investing in the economic infrastructure of rural communities and the health of the people who live there," said Brent Kuennen, Senior Vice President of Fund Management with Broadstreet. "Communities need affordable capital to address their critical needs. We structured the fund to provide it." The fund recently closed its first investment to support two new health facilities in Colusa, Calif., a community of more than 6,400 residents in California's central valley, an hour's drive from Sacramento. The fund provided $8 million of the project's $26.5 million total development cost to renovate an existing local building into a full-service health facility and, at the same time, build a new pediatric health clinic. Led by the Colusa Indian Community Council (CICC), the new health centers will support more than 28,000 patient visits annually in a community where people often travel as much as 60 miles for care. And, because the investment is backed by NMTCs, the cost of capital is much lower than it would be for a conventional loan, saving CICC $500,000 annually in debt service costs. The sponsor will use the savings to increase the pay of low-wage employees, improve compensation for health providers so they are attracted to work in Colusa and reduce pressure on the operating costs. "By blending low-cost capital from the fund with conventional debt sources, this project is able to move forward," Broadstreet's Kuennen added. "Without the NMTC financing, it would not be possible." About Morgan Stanley Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management, and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions, and individuals. For further information about Morgan Stanley, please visit About Broadstreet Impact ServicesBroadstreet is an impact financial services company offering fund administration, advisory, and fund management services. We work with values-aligned investors and fund managers to fuel social, environmental, and economic impact across the country. Our platform supports 52 multi-asset funds, 57 single-asset entities, and $2 billion in capital under administration and management—advancing equity and opportunity alongside financial performance. Over 20 years, we have developed a client base that values our customizable services platform, fund development experience, impact focus, collaborative partnership approach, and deep sector engagement. For more, visit Media Contacts:Susan Siering, Executive Director, Email: Broadstreet:Ariel Hargrave, ahargrave@ View original content: SOURCE Broadstreet Impact Services Sign in to access your portfolio
Associated Press
15-04-2025
- Business
- Associated Press
RDP/MagPro Partnership Brings Production and Jobs to America
FOREST CITY, Iowa, April 15, 2025 /PRNewswire/ -- Rural Development Partners (RDP) awarded $17.5 million in New Markets Tax Credit (NMTC) financing to MagPro, LLC, a Nonferrous Metal Production and Processing corporation located in Camden, Tennessee. Funding will enable the purchase of parts necessary to construct 5-7 vacuum furnaces, driving expansion and growth for the company while creating an additional 150 quality jobs in rural Benton County. RDP allocation is the second in a two-phase business plan utilizing NMTCs, the first enabling MagPro to increase production by nearly 100% while creating over 50 new jobs. Employees receive specialized in-house training and workforce development opportunities unique to the industry, presenting a great opportunity for rural workers to economically further their skillsets. Benton County Mayor Mark Ward stated, 'The expansion will significantly benefit our local and nearby rural communities. MagPro's understanding of the value of meaningful contributions has made it an integral part of our economic development efforts, and we greatly appreciate their continued partnership and support.' The United States magnesium industry consumed $4.35 billion worth of magnesium in 2021, $4.58 billion in 2022, and is projected to reach $7.6 billion in sales by 2032. MagPro is building its cash reserves so it can undertake substantial increases in the purchasing of raw materials and inventory. There is, effectively, an unlimited amount of raw material available, but shortfall of those who can manufacture and recycle magnesium the way MagPro can. The company's immediate goal is to promote their current product line while extending its portfolio of products and services. Magnesium is primarily used in the aluminum and steel industries, also by die casters who make parts for the aerospace, automotive and medical industries, the military, and so much more. MagPro's business plan projects a 25% increase in the purchase of inventory and raw materials, resulting in a 40-50% increase in sales volume over the next five years. Their ultimate goal within the next 10 years is to become the largest primary magnesium producer in the United States, bringing jobs to America and substantially decreasing U.S. industry dependence on imports. 'RDP is proud to partner with MagPro on this very impactful project to enable them to strengthen their efforts in providing high-quality jobs in Camden and the surrounding area. China is currently the world leader in magnesium manufacturing and MagPro's expansion will greatly help reduce the USA's industry reliance on them.' – Dan Helgeson, CEO of Rural Development Partners MagPro MagPro LLC was founded in 2003 and is one of the world's largest magnesium recyclers, and second largest producer of Primary Magnesium in the United States. MagPro is the only magnesium manufacturer in the world that recycles low grade magnesium scraps, offering a number of tolling conversion programs for specification as well as specialty alloys tailored to meet individual customer needs. Rural Development Partners LLC Rural Development Partners is a Community Development Entity with a national service area eligible to apply for an annual allocation of Federal New Markets Tax Credits. From 2004 through 2024, RDP has won thirteen NMTC awards from the US Treasury totaling $816.7 million. Funding has helped over 50 businesses and nonprofits expand to provide quality jobs, economic impacts, and healthy food access in underserved communities. RDP seeks to serve and partner with businesses, non-profits, communities, and government entities that share its mission to build public-private partnerships for catalytic job growth in rural America. Learn more about RDP and the NMTC program by visiting our website or social media platforms at Facebook, LinkedIn, and YouTube. Media Contact: Rural Development Partners [email protected] View original content to download multimedia: SOURCE Rural Development Partners
Yahoo
08-04-2025
- General
- Yahoo
Funding now fully secured for construction of new Uvalde elementary school
Editor's Note: The above video is KXAN's previous coverage of design renderings for Legacy Elementary School in Uvalde. UVALDE, Texas (KXAN) — Nearly three years after the tragedy of the Uvalde school shooting, the community has reached a milestone in the process of moving forward. Leaders announced Tuesday morning the costs of the physical building and construction of the new elementary school are now fully funded. New Uvalde elementary school approved, construction planning begins Legacy Elementary School will replace Robb Elementary, which was closed permanently after 19 students and two teachers died in the mass shooting in May 2022. A groundbreaking ceremony was held on the construction site of the new school in October 2023, and construction began in February 2024. The construction of Legacy Elementary School is expected to be fully completed this fall, and the nonprofit foundation responsible for raising the funding is continuing to raise funds for other campus and district needs beyond the physical construction. The Uvalde CISD Moving Forward Foundation, which was created to support the construction of the new school, announced that a recent combined investment of $21 million marked the final portion of funding needed to cover the costs of the building and construction of the school, according to a release from the nonprofit. Renderings of new Uvalde school include tribute to Robb Elementary victims 'Getting to the point of being within six months of the campus being ready for use has been quite a feat that would not have been possible without the support of so many funders and supporters,' said Tim Miller, executive director of the Uvalde CISD Moving Forward Foundation. 'We are asking that more people join us on this journey of hope and healing for the Uvalde community and support our 'Hope Blooms in Uvalde' campaign through which we are still working toward meeting a $5 million match challenge.' The $21 million investment came from Chase, Empowerment Reinvestment Fund, National Community Investment Fund, and Nonprofit Finance Fund. The investments were made through New Markets Tax Credits (NMTCs), a federal program designed to encourage private investment in underserved areas, the release said. The release noted that an initial round of investment through NMTCs to the Legacy Elementary School project was made in December. That round totaled a combined investment of $24.5 million made by Chase, Prestamos CDFI, a division of Chicanos Por La Causa (CPLC), and Raza Development Fund. Renderings of the school that were released in April 2023 included a tribute to the 21 victims who were killed in the shooting. The proposed tribute is a tree, designed with two large branches to represent the teachers and 19 smaller branches to represent the students who lost their lives. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
