October 28, 2022
Categories: Press Release,
The 8th award for PIDC Community Capital for a total of $418 million in New Markets Tax Credit allocations over 14 years
PHILADELPHIA (October 28, 2022) – Today, PIDC announced its CDFI subsidiary, PIDC Community Capital, was awarded $45 million in New Markets Tax Credit (NMTC) allocation from the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund). PIDC Community Capital was one of 107 organizations nationally selected to receive an allocation in this current round. The CDFI Fund announced a total of $5 billion in NMTC allocation aimed at spurring investment and economic growth in low-income urban and rural communities nationwide.
This marks PIDC’s 8th award of NMTC allocation for a total of $418 million. To date, PIDC Community Capital has deployed $330.3 million in 42 development projects with a total project investment of $942 million, which have provided essential goods and services, created jobs, and transformed neighborhoods in Philadelphia.
“Just 18% of the awards went to organizations serving only a local market and PIDC Community Capital is thrilled to have been selected among that group,” said Anne Bovaird Nevins, president of PIDC. “We are excited for the opportunity to build on our strong track record of impact with the NMTC program. This award will allow us to make new investments that drive toward PIDC’s vision for a more inclusive, equitable, and sustainable Philadelphia where all residents benefit from economic development and a growing global economy.”
The NMTC program helps economically distressed communities attract private investment capital. This federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. Communities benefit from the jobs associated with investments in a wide array of industries. Communities also benefit from greater access to housing and public facilities.
PIDC Community Capital has deployed $330.3 million in 42 development projects located in severely distressed census tracts throughout the city. These projects have, or will, create and retain more than 4,000 jobs and have developed or rehabilitated multiple facilities. Some notable recent projects include:
SUPRA | EMSCO – SUPRA and EMSCO are Black-owned office and medical supply companies that constructed a new 70,000 SF headquarters featuring office and advanced warehouse space on land acquired from PIDC at 4801 W Jefferson St. The new HQ will triple their former space and allow SUPRA | EMSCO to hire 50 new employees. PIDC allocated $16 million, one of our largest allocations in history, to support the $21 million project.
Philadelphia Youth Basketball (PYB) – Located at 4250 Wissahickon Ave, PYB is the renovation of a 97,975 SF warehouse to house PYB’s basketball-based youth development center serving over 6,000 youth per year with multiple courts, classrooms, locker rooms, a food commissary, and areas dedicated to civic engagement, health & wellness, and financial literacy. PIDC contributed a $13 million allocation to the $28 million project.
Felt+Fat – Felt+Fat manufactures high-quality ceramic tableware in Kensington. After pivoting to direct-to-consumer sales in 2020, Felt+Fat experienced surging demand and required upgraded equipment to address their production backlog. With a total project cost of $1.7 million, PIDC provided a $1 million Impact Development Fund loan, an innovative loan program capitalized with New Markets Tax Credits, for working capital and equipment.
To learn more about eligibility for New Markets Tax Credits through PIDC, please visit www.pidcphila.com/product/new-markets-tax-credits-nmtc or call 215.496.8020.
ABOUT PIDC AND PIDC COMMUNITY CAPITAL
PIDC is Philadelphia’s city-wide, public-private economic development corporation. A non-profit founded in 1958 as a partnership of the City of Philadelphia and the Greater Philadelphia Chamber of Commerce, PIDC’s mission is to spur investment, support business growth, and foster developments that create jobs, revitalize neighborhoods, and drive growth to every corner of Philadelphia. Over the past 64 years, PIDC has settled over 13,000 transactions with a diverse range of clients – including more than $18.5 billion of financing and 3,350 acres of land sales – which have leveraged tens of billions of dollars in total investment and assisted in retaining and creating hundreds of thousands of jobs in Philadelphia.
PIDC Community Capital was established as a subsidiary to attract, expand, and deliver additional resources for community investment in Philadelphia’s most underserved areas and was certified as a CDFI by the U.S. Treasury Department in 2012. PIDC Community Capital builds sustainable neighborhoods, revitalizes business corridors, and supports business growth by making investments that create jobs, grow businesses, leverage outside capital, and provide goods and services to low-income communities throughout Philadelphia. It offers a variety of flexible financing products for small businesses to fund working capital, building acquisition, equipment, or improvements.