Investing in economic development projects with lasting impact
Our New Markets Tax Credit (NMTC) program supports high-impact community development projects that benefit underserved areas. Fueled by allocations of tax credits from the US Department of the Treasury, the program facilitates private investments and lowers the cost of capital for community and economic development projects that create quality jobs and long-term opportunities for low-income people and communities. BlueHub Capital has received ten allocations totaling $608 million from this very competitive program.
Our investment strategy
We identify high-impact projects in low-wealth areas that, without the substantial below-market private investment from the NMTC, could not get off the ground or expand. Typically, these projects are community facilities, manufacturing plants or commercial developments that deliver high-quality, sustainable jobs or services for local residents. We then bring in national equity investors to finance these projects at very favorable rates, providing savings that make the projects economically sustainable.
BlueHub Capital takes a three-pronged approach to NMTC investments:
- Invest in projects large enough to strengthen local industry and diversify the economic base, as well as provide high-quality, accessible jobs and needed community services and goods to low-wealth regions
- Work with co-lenders and investors that have relevant regional experience
- Structure our investments to generate sustainable social and financial returns
Where we work
We work nationally and have deployed NMTC allocations in 20 states. We partner on community and economic development projects in the nation’s most underserved rural and urban communities, including these examples:
- Community facilities such as a healthcare center, social service organization and schools in Connecticut, Tennessee, North Carolina and Massachusetts
- Food manufacturers in Tennessee and Georgia
- Commercial real estate redevelopment projects in Texas, North Dakota, Virginia and Connecticut