National New Markets Fund, LLC, an affiliate of Los Angeles, CA-based SDS Capital Group, and the TD Community Development Corporation, a wholly-owned subsidiary of TD Bank, N.A., together have invested $25 million in New Markets Tax Credit (NMTC) allocation into Charles Komar & Sons, Inc. distribution center expansion in Ellabell, GA. The cumulative local employment impact of Komar’s new plant is substantial, creating an estimated 300 full-time jobs.
Komar is a 50% women-owned apparel manufacturer and distributor that works with more than 100 owned, licensed, and private label brands to produce 110 million garments annually. NNMF’s $15 million allocation, coupled with TDCDC's $10 million allocation, will fund the equipment at Komar’s new 765,000 SF e-commerce and distribution center in Ellabell, GA.
The investments utilize capital from the NMTC program administered by the U.S. Treasury Department. Investment groups, such as NNMF and TDCDC, compete annually to receive NMTC awards. These selected allocatees sell the tax credits to institutional investors, using the proceeds to invest in projects benefiting low-income communities – such as Komar’s new plant.
“The New Markets Tax Credit program was critical to our ability to fund this new manufacturing and distribution site,” said Komar Chief Financial Officer, Harry Gaffney. “Thanks to these NMTC allocatees, we are bringing hundreds of quality, full-time jobs into our Savannah community.”
“The economic benefit from Komar’s creation of this new plant is immense,” said Deborah La Franchi, CEO, National New Markets Fund. “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.”
Komar received the NNMF allocation as part of a complex $25 million NMTC financing package. TD Bank is the investor purchasing the NMTCs from each of the participating NMTC allocatees: NNMF and TDCDC.
"We are proud to support Komar's strategic expansion into Bryan County,” said Michael Cooper, President of TDCDC. “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.”