NEW ORLEANS, Oct. 21, 2008 (GLOBE NEWSWIRE) -- The U.S. Department of the Treasury announced this week that Advantage Capital Partners has been awarded a $60 million allocation in the sixth round of the federal New Markets Tax Credit program. Advantage Capital was one of 70 organizations selected this round out of 239 that applied earlier this year. This latest allocation brings the firm's total awards to $318 million since the innovative federal initiative began.
"Advantage Capital continues to make a positive economic impact on low-income communities through the New Markets program," said Steven T. Stull, president of Advantage Capital. "Since 2003, our firm has utilized its allocations to help fund innovative technologies, foster local entrepreneurs, create jobs and revitalize neighborhoods."
The federal New Markets Tax Credit program, administered by the U.S. Department of the Treasury, encourages economic growth and job creation in distressed neighborhoods by providing tax incentives to private-sector investors who commit investment capital to entrepreneurs and businesses in these targeted areas. Advantage Capital has participated in the New Markets program since 2003, raising private capital for investment in low-income communities and spurring job creation throughout the U.S.
"Given the current state of credit markets, this capital will help to provide a crucial stimulus, driving much-needed investment dollars into disadvantaged areas," said Michael T. Johnson, managing director at Advantage Capital. "In turn, these investments will create jobs and contribute to the long-term economic viability of many low-income communities across the country."
Advantage Capital's allocation was among $3.5 billion in total awards announced this week by the Department of the Treasury. Since the program's inception, the Treasury has awarded $19.5 billion in allocations. The program was recently extended by Congress for an additional year, which will enable a new round of allocations in 2009.
About Advantage Capital Partners
Advantage Capital Partners (www.advantagecap.com) is a leading venture capital and small business finance firm focused on early stage companies and other investments supporting state and local economic development efforts. With offices and partners in New Orleans, St. Louis, Austin and other U.S. cities, Advantage Capital has raised more than $1 billion in capital since 1992 and invested in companies located in geographic areas underserved by traditional venture capital.
About the New Markets Tax Credit program
The federal New Markets Tax Credit program, administered by the U.S. Department of the Treasury, encourages private-sector investment in economically distressed communities through tax incentives. In a highly competitive allocation procedure, the Treasury Department awards the tax credits based on applications submitted for each tax year. Applications are evaluated based on the submitting organization's experience investing in capital; experience in and strategy for raising capital; strength and depth of management team; and expected community impact of the business plan.