A Minnesota beef processing facility was seeking $20 million in New Markets Tax Credit (NMTC) allocation to expand their current facility. In an effort to meet customer demand, the company needed to upgrade, modernize and expand their operation. The two phase project will include a 16,600 square-foot expansion and is expected to add 63 full-time jobs.
Due to the nature of the cattle processing industry, the ability to secure cattle and the timeline to process the meat varies and can be risky. The NMTC allocation would assist in mitigating these risks and allow the company to feel comfortable pursuing the expansion.
Baker Tilly Capital solution
Through Baker Tilly analysis, the expansion was recognized to be a key contributor to the community’s long term growth, had potential to attract businesses to the area and created jobs to prevent locals from traveling outside of the area for employment opportunities. NMTCs were identified as a key solution to supplement the capital needed.
The Baker Tilly team successfully secured $20 million in New Markets Tax Credits allocation to support the project. Upon completion, the expansion project will keep the company competitive during market cycles and positively impact the community by creating 63 manufacturing jobs.
For more information on this topic, or to learn how Baker Tilly Capital specialists can help, contact our team.