The 50% women-owned apparel manufacturer and distributor Charles Komar & Sons will receive $15m in funding from the National New Markets Fund (NNMF) and $10m from TD Community Development Corporation (TDCDC) to fund the equipment at its e-commerce and distribution centre in Ellabell, Georgia.
“The New Markets Tax Credit programme was critical to our ability to fund this new manufacturing and distribution site,” said Komar’s chief financial officer, Harry Gaffney. “Thanks to these NMTC allocatees, we are bringing hundreds of quality, full-time jobs into our Savannah community.”
The financing arrangement, totalling $25m, sees TD Bank as the investor purchasing the NMTCs from both NNMF and TDCDC.
The NMTC programme, overseen by the US Treasury Department, serves as the anchor for such initiatives. Under this programme, investment groups like NNMF and TDCDC vie for annual NMTC awards.
The successful recipients sell these tax credits to attract institutional investors, channelling the proceeds into projects that are said to benefit low-income communities such as Komar's new distribution plant.
Deborah La Franchi, CEO of National New Markets Fund commented: “Not only is this a women-owned company — a rarity in the industry – but 300 new, quality jobs will be created with most positions not requiring any advanced degree.”
DCDC president Michael Cooper added: “At TD, we're committed to fostering economic development via projects that create quality and accessible jobs, and Komar, a third-generation family-owned business, is well-positioned to deliver on this shared commitment."
