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
It began as a one-man DJ; now this ‘Platinum’ experience is landing KCI’s first big event at the new terminal
In-person events are back with vengeance, said Kris Nardini; and Platinum XP is positioned to plan experiences coming only from one’s wildest imagination. “Platinum XP is a single-source, full-service event planning agency. This means that we can quickly create proposals — that are very creative — but also on budget,” explained Nardini, the owner and…
‘Every business matters, every job matters’: How $69M in federal funds is already boosting KS entrepreneurs
Kansas will use a recent influx of federal funding to strengthen the state’s small business and venture capital ecosystems, according to project leaders of a new high-profile effort focusing on equitable access. The state was allocated $69 million earlier this year as part of the State Small Business Credit Initiative (SSBCI), a federal program that…
Scavenger Tech greenlights indoor-outdoor exploration with box that only unlocks by visiting GPS markers
An inventor’s GPS-driven scavenger hunt device provides needed adventure in the physical world — minimizing screen time while unlocking meaningful challenges and experiences, said Jeff VanDeusen. “I’ve always been someone who likes to go outside and enjoy nature, and I know that’s not always what engineers are known for,” said VanDeusen, creator of Scavenger Tech and…
‘Newbie’ maker collective adds gifts, plants and untamed flair with new West Bottoms shop
The West Bottoms might be known for its vintage shops, but a just-opened maker collective full of new retail is hoping to add to the neighborhood’s narrative. 12th Street Post — a mixed-use retail space with about 80 local makers and vendors at 1501 West 12th St. — celebrated its grand opening Dec. 2. The…