HRIF Closes on New Markets Tax Credits for 4 Companies Looking to Expand Around St. Louis Area
Funds awarded total more than $18 million
Heartland Regional Investment Fund, LLC (HRIF), a subsidiary of St. Louis Economic Development Partnership (STL Partnership), has closed on $18.35 million in New Markets Tax Credits (NMTC) for four businesses that will be expanding in the St. Louis area. The businesses that were granted the funds are CommSell, TriStar Properties, Cocolevio and HatLaunch.
The U.S. Department of the Treasury Community Development Financial Institutions Fund gives tax credits to Community Development Entities (CDEs), such as HRIF, to provide loans and investments to businesses in low-income communities.
“We are thrilled that we can help these companies that are looking to expand through our New Markets Tax Credits,” said Jeff Colona, director of New Markets Tax Credits at STL Partnership. “These loans should help these up-and-coming businesses with the expansion they need to be more profitable and bring additional job opportunities to the St. Louis area.”
CommSell, a distribution company in Overland, Mo., that remarkets consumer electronics, received a $9.5 million qualified equity investment. The money will be used to increase staffing and inventory.
HRIF, along with Advantage Capital, provided TriStar Properties, a developer of industrial and multifamily real estate, with a predevelopment loan of $3 million. This loan will be used for the planning of a new Tru Hotel by Hilton, a boutique hotel that will be located in University City, Mo., north of the Delmar Loop.
Cocolevio, a software development company based in Austin, Texas, received a $1.85 million loan for working capital to assist the company as it adds a location in Hazelwood, Mo.
HatLaunch, a custom hat embroiderer and shirt screen printer in Collinsville, Ill., also received funding from HRIF. The $4 million will support refinancing debt and working capital as the company has grown from one employee to 45 in four years.
The HRIF provides financing to projects in distressed communities by the managing members, consisting of the City of St. Charles, Southwest Illinois Development Authority and STL Partnership. Eligible areas HRIF serves are St. Charles and St. Louis Counties in Missouri, plus Bond, Clinton, Madison and St. Clair Counties in Illinois.