When it comes to capital projects for businesses (Commercial, Industrial etc.) it takes a lot of money. This applies to new construction as well as redevelopment. There are many financing tools available, outside of grants, to obtain the funding required for the construction costs. Many of these tools can be used together to get the capital stack (resources of funds) to work. Many of these tools are not simple and take time to secure. The professional resources who can provide financing from these programs is very decentralized with very few experts across the US. Some tools are only available in certain census tracts, but not all. However, these financing tools could launch Volusia County to be more competitive in landing new businesses. These tools can help attract national speculative builders or bring resources together to show a prospective business that Florida is competitive and willing to help businesses who want to have a location in Florida. All with the focus on attracting higher paying jobs for residents.
Example: a business (or nonprofit) needs to expand and found a building in an Opportunity Zone, but the investment funds are not enough to cover the cost of purchasing the building as well as redevelopment costs. Other tools could be used along with the OZ funds, to get the necessary capital. New Market Tax Credits (NMTC) is one example. A loan is required with NMTC (7 year term, interest only), but the investment piece (basically a grant) could make the deal come together. Or if more funds were still needed, possibly C-PACE financing could bring more capital to the project (paying for the roof, HVAC, etc).
The above references just a few examples of ways to find capital for a commercial project. The following pages lists many of these federal tools and some resources associated with these types of unique financing. (This does not cover local or state grants, which could be additional resources.). If you are interested in these financing tools and want to learn more, please reach out to Volusia County Economic Development - Helga van Eckert at 386-248-8048
Maps of areas in Volusia County that qualify for the tools noted below
Presented by: James Carras – Carras Community Investments, Inc.
US Treasury Tools
Opportunity Zone – a tool that can help defer capital gains for investment in designated areas
New Market Tax Credits – lending as well as investment dollars (tax credits) for commercial projects in designated areas,
CDFI Funds – private/public funds for affordable lending of commercial projects
LIHTC – tax credits/lending for low income housing in designated areas
Community Block Grants
Other Federal Agency Tools
Economic Development Administration
Historic Tax Credits
(Property Accessed Clean Energy)
Presented by: Michael Moran -PACE & Davesh Nirmul – CounterpointSRE
A unique 100% long-term, fixed-rate financing for energy efficiency, resiliency, water conservation and sustainability upgrades to building paid through property taxes.
Here is the map showing what municipalities have approved this type of financing: http://floridapace.gov/serviceareas/
Presented by: Richard Hatton – Piper Sandler
Examples of how to use multiple tools to make a commercial project come together, as well as how to get access to the money from these public finance tools. (video – starting at 2:36:00 )
Federal Government Links:
CDFA - http://www.cdfa.net/
Opportunity Zones - http://www.cdfifund.gov/opportunity-zones
Novogradac & Co