With loan from regional nonprofit lender Craft3, BC Fisheries plant will create jobs and, for the first time, allow shrimp and crab to be processed locally
Today, Brookings-based BC Fisheries officially cut the ribbon on a new $9.6 million seafood processing facility that will benefit southern Oregon coast crabbers and shrimpers. The facility:
- will create 30 new jobs,
- eliminate the need for long-distance shipping of locally-caught seafood for processing, and
- is the first-of-its-kind to use cool steam technology on the West Coast.
“After two years of hard work, we’re thrilled to cut the ribbon on a beautiful new processing facility. It was only possible with the support of our many financial partners, as well as Sens. Jeff Kruse and Betsy Johnson, and Rep. Wayne Krieger, who were great advocates for this project and are seeing it through to completion. But most of all, we’d like to thank the community. Your support means that millions of pounds of locally-caught and -processed Oregon pink shrimp can be eaten around the world.It is exciting to know it is shipped from our hometown of Brookings-Harbor,” said Mike Manning, Owner of BC Fisheries.
Family-owned BC Fisheries was founded in 2007 as a small fish buyer. In 2013, they realized growth was needed for their business and the local economy. Despite offloading about 1.5 million pounds of shrimp per month, the company was unable to process them locally. This meant that the financial reward of most of the local fisheries was leaving town and not providing jobs or other opportunities where the community needed them. Long-distance shipping to far-off processors was also leading to high transportation costs.
Craft3’s $6.3 million loan allowed BC Fisheries to build an insulated processing building at the Port of Brookings-Harbor adjacent to off-loading docks, purchase equipment, and have adequate working capital. The new facility will be able to process up to 2.4 million pounds of shrimp per month.
“Unlike traditional lenders, Craft3 was able to creatively structure the BC Fisheries deal and embed a USDA guarantee within the NMTC structure.The Mannings are creating a positive impact on their community, and Craft3 is proud to be their partner on this transformative and sustainable asset that keeps fishing and processing local,” said Adam Zimmerman, President & CEO of Craft3.
The Craft3 loan was partially guaranteed by USDA Rural Development, and also had financial support from The Oregon Community Foundation, Ford Family Foundation, and U.S. Bank. Critical additional capital for the project was provided through a state New Markets Tax Credit (NMTC) allocation by Business Oregon to Petros-Pacesetter, which then attracted outside investment capital from Capital One.
“Access to capital is essential for any business to grow and succeed, but financing can be difficult to obtain in small, rural communities,” said USDA Rural Development State Director Vicki Walker. “A USDA Business and Industry loan guarantee enabled Craft3 to extend additional credit for this project, which will provide a vital facility for the region, build economic prosperity, and create jobs.”
"The growth of the seafood processing industry is critical to the long-term economic competitiveness of the south coast,” said Chris Harder, director of Business Oregon. “The state's investment in BC Fisheries through the New Market Tax Credit program enabled the company to invest in new equipment and design a state-of-the-art facility, ultimately leading to new, quality jobs."
“Petros-Pacesetter was pleased to provide an $8.0 million allocation of Oregon New Market Tax Credits for this project. NMTCs are key to supporting rural investment, and we were proud to use them here to invest in BC Fisheries and the Oregon South Coast community,” said Jim Stanislaus, Managing Director of Petros-Pacesetter, a joint venture between Petros Partners and Pacesetter CDE, Inc.
The event was attended by Chris Harder, Director of Business Oregon, Vicki Walker, State Director of USDA Rural Development, State Senator Jeff Kruse, State Representative Wayne Krieger, financing partners Craft3, Petros-Pacesetter, and Capital One, and other members of the community.