June 15, 2015 (Portland, ME)–Today the U.S. Department of Treasury allocated $55 million in New Markets Tax Credit capacity to CEI Capital Management. The firm will deploy the award to economic development projects that create opportunity in rural, low-income communities across the nation.
A leading practitioner of the program, CEI Capital Management has employed New Markets Tax Credits for 88 projects since 2004, creating or preserving 4,553 permanent jobs for positions such as paper mill and saw mill operators, child care providers, health care providers, dairy production staff, hospitality professionals and clean technology engineers, among others. Because CEI Capital Management carries the triple bottom line mission of its parent, Coastal Enterprises, Inc. (CEI), the New Markets projects that it engages also include positive environmental strategies including renewable energy production and LEED qualified construction.
“We are grateful for the longstanding support from our Congressional delegation,” said CEI Capital Management CEO Charlie Spies. “This significant allocation allows us to continue our work to diversify rural economies. Incenting investors to these projects creates a ripple effect that extends more broadly into communities through the supply chain and local businesses, restaurants, barber shops, hardware stores, and pharmacies, to name a few.”
Altogether the US Department of Treasury made allocations to 76 community development entities around the country, totaling approximately $3.512 billion of new markets tax credit capacity out of a total 263 applications seeking $19.9 billion. Approximately 73.6 percent of the investment proceeds will likely be used to finance and support loans to or investments in operating businesses in low-income communities, according to the Treasury. They also say approximately 26.4 percent of the investment proceeds will likely be used to finance and support real estate projects in low-income communities.
“The New Markets program has been a successful instrument in the pursuit of our mission, to advocate for low-income individuals, children and families at the margins of society,” said CEI founder and CEO Ron Phillips. “We are able to leverage the positive aspects of financial markets, using tax policy to induce community development.”
CEI Capital Management has scores of testimonials from the newly employed and small businesses about the economic benefits they’ve seen from New Markets projects. The owner of a small general store in Piscataquis County, Maine reported seeing the positive impact of the Appalachian Mountain Club (AMC) in his cash register. The AMC worked with CEI Capital Management to use New Markets Tax Credits in financing the parcel purchases that make up a significant portion of their Maine Woods Initiative.
Similarly, new hires at Molnlycke Health Care’s state-of-the-art wound care product manufacturing plant on the site of a former military base in Brunswick, Maine report their ability to reinvent their careers. New Markets Tax Credits allowed Maine to compete globally to be the home for this project.
New Markets Tax Credits are also responsible for bringing quality health care to central New Hampshire’s underserved population, through the construction of Mid-State Health, a federally qualified community health provider. The project brought new jobs, spurring the development of a new retail plaza and other small businesses.
The new allocation announced today will be deployed to projects in rural places that create or preserve jobs and further contribute to revitalizing the community.
About CEI Capital Management LLC
CEI Capital Management creates and preserves jobs and improves quality of life in rural, low-income communities by providing access to project capital through New Markets Tax Credits. Over 10 years CEI Capital Management has placed nearly $900 million in 88 different projects across the U.S. In addition to fiscal soundness, CEI Capital Management evaluates each project according to its benefit to the local community, economic gain and positive impact on the environment. It is a wholly-owned subsidiary of CEI, the Maine-based nonprofit community development financial institution which was among the founders of this important federal economic development program. For more information, visit our website at http://www.ceicapitalmgmt.com or our YouTube channel for short video clips on how we use the program.
Christen Graham 207-838-0082 or firstname.lastname@example.org