Regional business lender Craft3 announced today that it will invest in REACH, Inc. as part of a $7 million project to preserve and expand the nonprofit’s Klamath Falls facility, according to a news release.
This will be the first federal New Markets Tax Credit project in Klamath County, and the first Craft3 investment in the region since the lender announced its intention to open an office in Klamath Falls July 19.
“We’re proud to be partnering with REACH in Klamath Falls,” said Adam Zimmerman, Craft3 President and CEO. “Since our founding, investing in community institutions like REACH has been one of Craft3’s strengths. We’re excited that our recently-announced Klamath Falls office will open the doors to more capital for similar projects across Southern and Southwest Oregon.”
The overall project will be financed by a $3.85 million loan from Craft3 and a $6.75 million federal New Markets Tax Credit (NMTC) allocation by National Community Investment Fund (NCIF), which then attracted outside investment from Capital One. The project allows REACH to formally acquire the Maywood Mill Site, where it has operated for years, and a former bank building nearby. The acquisitions will allow the facility to train additional staff and provide opportunity to more members of the community.
“Purchasing and upgrading our facilities so that we can provide increased programs for the Klamath community has been a dream of ours for years. We’re so grateful that Craft3, NCIF, and Capital One were willing to work with us to make that dream a reality,” said Ron Moe, Executive Director of REACH. “And we’re thrilled that we’ll be able to call Craft3 our neighbor here in Klamath Falls.”
In addition to over 60 production, training and administrative staff, REACH currently provides services to over 100 program participants, many of those at integrated jobs and employment training opportunities at several locations in the Klamath community. The centerpiece of its operation is its sawmill, recycling, and custom wood product facility on Maywood Drive, which is the focus of the New Markets Tax Credit project. After completing the project, REACH expects to be able to double the number of people it serves within five years.
On July 19, Craft3 announced that it would open a new office in Klamath Falls to primarily serve Klamath, Jackson, Josephine, Lake, Douglas, Curry and Coos counties. Since Craft3 was founded in 1994, it has invested nearly $30 million in that seven-county region.