written on December 14th, 2011 | by James R. Klein
James Klein, Finance Fund CEO, has been elected to a seat on the Executive Committee of the New Markets Tax Credit Coalition (NMTCC). The 48-seat board is comprised of members from leading organizations that utilize NMTC, lending institutions, investors, and business professionals. Klein’s duties include advising on policy and regulatory issues that affect the use of NMTC and to work with the coalition to improve the program and leverage case studies.
The NMTCC is a national membership organization representing Community Development Entities (CDEs) and investors working with the NMTC program. The Coalition was formed in 1998 with the principal purpose of advocating for the enactment of a federal tax credit to spur economic development in underserved areas. The Coalition works to ensure that the NMTC program can effectively be used to attract private capital and generate economic development in poor communities.
written on November 22nd, 2011 | by James R. Klein
Finance Fund is proud to be a part of the new 138,000 square foot General Electric EPISCenter under construction on the University of Dayton campus. This new aviation research and development facility furthers the region’s goal to become the ideal location for advancing and supporting the industry.
Interestingly, the facility is being constructed on what is called a brownfield, a site that has become unusable due to the environmental concerns of the facility that previously sat on the property. In the case of the EPISCENTER, it will create a new purpose for a former NCR facility while sparking the local economy with the jobs it will create.
“We are hoping this is a catalytic project for the site,” said Brian Heitkamp of CityWide Corporation, a developer of the site. “This is the first step in making a long term impact on local economies by developing this type of facility. Redeveloping brownfield sites is harder to do, but it is important since they are usually in urban centers.”
Construction of the facility was partly made possible through New Markets Tax Credits and private investment from Finance Fund, CityWide Development Corporation, Urban Research Park CDE, LLC and PNC Community Development Corporation. The New Markets Tax Credit program encourages private capital investment into designated low income communities to spur economic revitalization.
This public-private partnership is an excellent example of how the New Markets Tax Credit program helps regions create a sustainable economic path. By investing in the EPISCENTER, we are ultimately investing in the future success of the Dayton region.
Learn more about the GE EPISCenter by watching the below video:
The latest Tech Town building, “Tech Town III,” opened its doors for the first time on Friday, October 28 in Dayton. The project, which began last September, encompasses a new 55,000-square-foot smart office building financed through a combination of New Markets Tax Credits, a grant from the Ohio Department of Development’s Job Ready Sites program and funding from the City of Dayton.
The Tech Town area has been built to support a collaboration of technologies, creating a campus for start-ups, cutting-edge tech companies and research groups. Linking with the adjacent Wright-Patterson Air Force Research Laboratory and the University of Dayton Research Institute enables a viable connection for collaboration. A recent Dayton Daily News article talks in more detail about the new facilities.
Great things are happening in Dayton. Look for more information on how Finance Fund is playing a role in helping the area meet its objective of becoming an aviation technology and research hub soon.
There has been continuous talk about the job issues America has been facing. When factoring in underemployment, it has been reported our nation is at a 16% unemployment rate. Why is this happening? Who is responsible? How do we create more jobs? What can we do?
At Finance Fund, we keep doing what we’ve always been doing – leveraging funds to help spark community development and create jobs. The distressed communities we serve want to work and are excited to see that under construction sign. Real estate and business development means something new is about to happen, progress is being made and opportunities are on the rise.
Create jobs by development, we say. Where progress is being made in our distressed communities, heads are held high. We’re pleased to tell you the Labor Board announced, as of September, 103,000 jobs have been added to the economy. We’re excited because we know we engaged the right relationships to help local businesses get the capital they needed to grow and start projects to benefit Ohioans. We are part of that growth.
As we continue to work with banks and other investment partners to leverage New Markets Tax Credit funding, PreDevelopment and Economic Development grants, Intermediary Lending Programs and other credit and lending programs we know we will continue to make a difference. It is not one person’s responsibility — it is a coalition of unified effort that will make the change for this nation. None of us are as smart of all of us.
Finance Fund is just one piece of the puzzle. What crucial piece are you?
written on September 13th, 2011 | by James R. Klein
During his speech today, President Obama expressed the urgency to support small businesses and modernize our community infrastructure to create and sustain jobs. The federally funded New Markets Tax Credit program is an excellent example of how this type of initiative can work to benefit Ohioans. Since its inception, this program has created thousands of construction and full time positions, while providing much needed community resources in distressed communities. Continuing successful programs like this enable us to accelerateOhio’s economic recovery.
Finance Fund staff enjoyed getting close to the President this afternoon!
written on September 13th, 2011 | by James R. Klein
I am pleased to say that I will be in attendance at President Obama’s speech this afternoon during his visit to Columbus,OH. The event’s purpose, supporting job creation, is a subject that Finance Fund feels strongly about.
In response to the American Jobs Act, I can speak to bi-partisan federal programs like New Markets Tax Credits (NMTC) that have created thousands of full-time jobs in distressed communities. The NMTC program is one of Finance Fund’s strongest job creation resources. We have leveraged $249.2 million on an investment of $101.8 million to create 2,816 full-time jobs and 1,467 construction jobs inOhiosince 2004.
To learn more about our NMTC success stories and find out how the NMTC program can help with job creation in Ohio email Jen Deuber at jdeuber@financefund.org for more information or visit our website, http://www.financefund.org.
written on September 1st, 2011 | by James R. Klein
Health care is a constant struggle for many Americans, especially low-income individuals and families. The Columbus Dispatch’s August 9th article “Area Health Centers Hit Hard by Federal Cuts” reported that federal spending reductions could cause 5 million people to be turned away from their current Federally Qualified Health Center (FQHC).A National Association of Community Health Centers (NACHC) and Capital Link study found that the national need for capital between 2008 and 2015 exceeded $10.5 Billion. There is growing concern about the ability for FQHCs to continue to provide health care services in light of funding changes at the federal and state levels.
We are seeing Foundations, Community Development Financial Institutions (CDFIs), and nonprofits responding to fill this market need. Kresge Foundation has released its program to enhance the capacity of FQHCs and the primary care system. IFF, an Illinois-based CDFI, announced a new initiative, Health Centers for Healthy Communities. What can we do in Ohio?
Finance Fund, in partnership with the Ohio Association of Community Health Centers, conducted a survey of the 37 FQHCs in Ohio. The survey queried organizations regarding their current need for new investment and the resulting increase in services these investments would generate.
88% planned some type of real estate investment
76% planned future equipment investment
Finance Fund invites you to join the conversation as we develop potential solutions to increase access to capital in Ohio’s low-income communities. Comment below or contact Finance Fund’s Director of Development, Valerie Heiby at vheiby@financefund.org or Special Project Consultant Mark Barbash at mbarbash@financefund.org for more information.
Currently in both Houses of Congress there are bi-partisan bills – S.996, H.R. 2655 – for a five year extension of the New Markets Tax Credit Program (NMTC). If passed, the New Markets Tax Credit Extension Act would provide a five year authorization for $5 billion in annual credit allocation authority with an exemption from the Alternative Minimum Tax (AMT) for investors.
The NMTC funding fuels Finance Fund’s New Markets program which offers credit for fixed assets to nonprofit and for-profit business borrowers in qualifying low-income census tracks for projects that revitalize both urban and rural low-income communities in Ohio. With the extension of the NMTC program we hope to be awarded funds in the future and continue to make business and job growth possible for more individuals.
Senator Tiberi of Ohio is an original co-sponsor of the bill. His involvement is a powerful indicator of the support that exists in Central Ohio.
The NMTC Coalition is asking all businesses that have benefited from NMTC financing to sign their letter to Congress urging further extension of the NMTC program. To date more than 3,000 businesses located in all 50 states and DC have received an NMTC investment, but less than 500 are signed on to the Coalition’s letter. It is important to show Members of Congress that businesses want and need the program to continue.
Finance Fund’s completed project, the St. Lawrence O’Toole Close to Home III Assisted Living Facility, hosted Congressman Bill Johnson last week. We toured the facility and discussed the significance of programs in Ohio’s 6th district, home to some of Ohio’s most distressed communities along the southern and eastern boarders.
We have done extensive work in the area and were pleased for the opportunity to show the Congressman first-hand the impact one of our projects has had in his district. We toured the facility with the project owners Sharon Hartwig and Charlie Kunkel, spending time conversing about the impact of programs like the New Markets Tax Credit and what it can do for the community.
The Close to Home III project rehabilitated the vacant St. Lawrence O’TooleCommunity Center, originally built in 1910 as the St. Lawrence School. Its owners, St. Lawrence O’Toole Gardens, planned to build an 8,316-square-foot addition and make structural and sidewalk improvements. Of the 30 positions created by the project, 16 will be filled by individuals of low or moderate income.
We are looking forward to doing more in Ohio’s 6th district and working with Congressman Johnson on future projects. The Ironton Tribune coverage of the tour can be seen here.
Last week, it was announced that Finance Fund was chosen as one of the 20 first community lending organizations selected to receive $1 million for credit to qualifying small businesses under the SBA’s new Intermediary Lending Pilot Program. The only other Ohio recipient is Mahoning Valley EDC inYoungstown.
Authorized under the Small Business Jobs Act of 2010, the new Intermediary Lending Pilot Program will provide funding to community organizations or intermediaries, such as Finance Fund, who will then use those funds to help finance small businesses in areas that lack access to credit due to economic conditions.
Finance Fund will leverage this new source of financing in the form of low interest loans to support the funding needs of those in the 32 county area referred to as Appalachia Ohio. We are grateful for the additional aid and ability to continue carrying out our mission. We look forward to increasing points of access to capital for businesses that have been markedly affected by the recession.
We are pleased by this opportunity – with more we can do more. The lending ability presented to Finance Fund by the Intermediary Lending Pilot Program will enable more people to become connected to the resources they need. We are thrilled to begin helping turn more communities into thriving neighborhoods and businesses.
