Craft3 receives $50 million to invest in catalytic projects in Oregon and Washington

By: Craft3 staff - May 23, 2019
Source: Press Release

Award comes from the federal New Markets Tax Credit program

Today, Community Development Financial Institution (CDFI) Craft3 received a $50 million allocation of federal New Markets Tax Credits (NMTC) to invest in catalytic business and community projects in Oregon and Washington.

Craft3 will invest the allocation in critical job-creating economic development, clean tech and community facility projects – with a particular focus on projects in Native American communities. The allocation was announced by the U.S. Department of the Treasury. More than 50 percent of the award is expected to be committed to projects within twelve months.

“Craft3 was created on the premise that capital is the key to unlocking opportunity,” said Adam Zimmerman, President and CEO of Craft3. “This award will allow us to invest in catalytic projects that create jobs, revitalize rural areas and build a stronger regional economy.”

Craft3 has received a total of $83 million from three prior NMTC allocations – including $40 million in 2009, $35 million in 2006 and $8 million in 2003. Those past awards have benefited projects around the Northwest, including facilities construction at Clatsop Community College, a community-scale windfarm in Grayland, Washington and the construction of Oregon Coast Community Action’s new campus.

“Without Craft3’s New Markets Tax Credit investment in Clatsop Community College, we simply couldn’t have completed the Columbia Hall construction or Towler Hall renovation. These two buildings form the core of our academic spaces at CCC and are used by thousands of students and community members to grow, learn and succeed,” said Chris Breitmeyer, President of Clatsop Community College, which received a NMTC investment from Craft3’s 2006 allocation. 

The New Markets Tax Credit program is a tax credit that is transferable and attracts outside investment that stays in the project, usually as equity. These funds are used in the project in lieu of traditional debt.

Craft3 has also deployed more than $21 million in leveraged loans for transactions that involved a New Markets Tax Credit allocation to other parties. Two of those loans helped reopen an onion-processing plant in Ontario, Oregon and expand a nonprofit social services agency in Klamath Falls, Oregon.

The New Markets Tax Credit program is slated to expire at the end of 2019, after one final round of allocations. Bipartisan legislation, which Craft3 supports, has been introduced in Washington, D.C. to permanently continue the program. That effort is backed by, among others, Washington Senators Maria Cantwell (D-WA) and Patty Murray (D-WA) in the U.S. Senate and Reps. DelBene (D-WA-1), Blumenauer (D-OR-3) and DeFazio (D-OR-4) in the U.S. House of Representatives.

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