Local Food Bank Leverages Tax Credits to expand reach

Every day, thousands of Mid-South households struggle to feed their families. Too often, families have to choose between paying for medical care or utilities or buying food.  For many of these families, the Mid-South Foodbank (MSFB) provides the relief needed to prevent this dilemma.

Annually, the MSFB serves approximately 230,000 people. But servicing some of the most food insecure states in the country, the MSFB is charged to do more. Although ninety-six cents of every dollar goes directly to food distribution, operating out of two facilities which have become functionally obsolete and inefficient has prevented the MSFB from expanding its operations and increasing its reach.

As a result, in 2016 the MSFB embarked on a $12.5 million capital campaign to fund a new distribution center and consolidate operations into one facility. A component of the funds will come in the form of New Markets Tax Credits (NMTC). ComCap Partners is providing the guidance and expertise needed to structure the financing. 

Administered by the Department of Treasury, the New Markets Tax Credit Program (NMTC) helps economically distressed communities attract private capital by providing investors with a Federal tax credit. Investments made through the program are used to finance businesses focused on underserved low-income communities. Serving as consultants, ComCap Partners assisted the MSFB to secure a NMTC allocation by - identifying appropriate financing participants, analyzing transaction scenarios to deliver desired outcomes, and serving as a liaison between investors and their client. 

Through their capital campaign efforts, the MSFB has purchased a 227,000 SF warehouse, approximately two and half times the size of their current locations. Securing additional funding through NMTCs is critical to their efforts to increase efficiency, double their reach and consolidate their operations under one roof. The newly renovated facility will include warehouse areas, salvage and recycling areas, an agency mart, a community kitchen, and office, community and volunteer space.

ComCap Partners is excited to be part of a project that will have such a great impact on food insecure families across the Mid-South. ComCap Partners worked with the MSFB to finalize the financing and the deal closed in September. Construction has already started on the new facility and it is slated to be open by Spring 2019.  

~ComCap Partners Newsletter