HRIF Closes on New Markets Tax Credits for Alton Steel Inc.
$4 million loan will help grow job opportunities in Alton, Ill.
Heartland Regional Investment Fund, LLC (HRIF), a subsidiary of St. Louis Economic Development Partnership (STL Partnership), has closed on $4 million in New Markets Tax Credits (NMTC) for Alton Steel Inc. (ASI), in Alton, Ill., one of the largest manufacturers in the region. The loan from HRIF and Advantage Capital, a leading impact investment firm in Clayton, Mo., that invests in small businesses, affordable housing and renewable energy in underserved areas, will be used for working capital and is expected to assist Alton Steel Inc. in growing its operations in Southwestern Illinois.
“We know how crucial ASI is to the region, so the company was a perfect candidate for our New Markets Tax Credits,” said Jeff Colona, director of New Markets Tax Credits at STL Partnership. “Not only will this loan help expand job opportunities for the many talented people in Alton, but ASI will also continue to be a leader in the steel manufacturing industry.”
Going back to its days of supplying steel for New York’s World Trade Center in 1967, ASI has a rich history in the steel industry. Recently establishing itself in the Special Bar Quality marketplace, ASI has become a leader in producing sustainable steel products. These products include rounds, round-cornered squares, bar-in-coil and a full range of carbon and alloy grades for more than 100 customers.
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. 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. Louis and St. Charles Counties in Missouri, plus Bond, Clinton, Madison and St. Clair Counties in Illinois.