AltCap banks $55M in tax credits to bolster KC’s underserved entrepreneurs
February 15, 2018 | Bobby Burch
A huge award will enable AltCap to make a broader entrepreneurial impact in low- to moderate-income communities throughout Kansas City.
AltCap — a Kansas City-based community development financial institution that focuses on underserved populations — has received a $55 million new markets tax credit award from the U.S. Department of the Treasury. The award enables AltCap to continue financing high-impact investments and projects in economically challenged parts of Kansas City, said Ruben Alonso, president of AltCap.
“We are thrilled to receive this allocation award and thank the CDFI Fund as well Missouri Sen. Roy Blunt for being such a strong champion and advocate for the NMTC Program,” Alonso said in a release. “This allocation will allow AltCap to not only support more high-impact investments in distressed communities throughout Kansas City but also continue to grow as a uniquely positioned economic development stakeholder that empowers people and communities to thrive.”
Since 2008, AltCap has received $158 million in new market tax credits to finance job-creating businesses, nonprofits and real estate development projects. In Kansas City, the credits have helped finance such projects as manufacturing and distribution facilities, commercial real estate developments, historic redevelopment, and community health and education facilities.
In November, the Ewing Marion Kauffman Foundation awarded AltCap and three other microfinance lenders $300,000 each.
Through the $1.2 million gift spread between AltCap, Women’s Business Center, KC Hispanic Economic Development Corporation and Justine PETERSEN, the microfinance program offers capitalization opportunities for the nonprofit microlenders and Community Reinvestment Act credit opportunities for local banks.
The KC Microfinance Portfolio loans will be distributed this spring and sold to banks in the summer. Initially, the loans are expected to provide funds to 20 to 30 businesses, the Kauffman Foundation said, but have the potential to help a broader pool of local entrepreneurs.
Underrepresentation of minority groups and women hurts the U.S. economy by reducing the number of businesses and jobs they would otherwise create, according to the foundation. If minorities started and owned companies at the same rate as white entrepreneurs, the U.S. would have more than 1 million more businesses and as many as an extra 9.5 million jobs, according to Kauffman Foundation data.
2018 Startups to Watch
stats here
Related Posts on Startland News
Sass-a-brass trumpets representation as demand grows for its roving queer street performances
When Rosie O’Brien first organized a queer street parade brass band — specializing in Mardi Gras and Pride vibes — the sousaphonist-turned-arts leader had no idea the cultural impact and representation Sass-a-brass could bring to Kansas City. “The first time we got together as a band was for the first Lawrence pride parade in 2018,”…
Juneteenth efforts confront ‘complex history’, generational trauma in KC communities
Celebrating Juneteenth in Prairie Village — a community that historically excluded people of color — is a sign of progress, said Dr. George Williams. Stand Up For Black Lives+ Prairie Village and the Johnson County NAACP recently organized a weekend Juneteenth event — the groups’ fourth annual commemoration of June 19, 1865, the day the…
This BBQ vendor comes fully loaded with spuds and spices; Soon he’ll park the business along one of KC’s busiest streets
Southern flavors find a new home at the window of Thomas “TC” Clark’s food truck, a popular Kansas City destination on wheels that specializes in Southern and barbecue cuisine served on loaded baked potatoes. “When I moved here, I missed the barbecue baked potatoes we had back home, so that was a big inspiration,” said…
Before restaurant’s debut, this KC founder’s expansion was threatened by predatory loans
Editor’s note: The following story was originally published by AltCap, an ally to underestimated entrepreneurs that offers financing to businesses and communities that traditional lenders do not serve. There’s nothing quite like the crackling warmth at the heart of a campsite. “I just love what the fire does,” said Amante Domingo. “It brings people around,…