National New Markets Fund, LLC, an affiliate of Los Angeles-based SDS Capital Group, has invested $17.5 million of its New Markets Tax Credit allocation (“NMTC”) for the expansion of global food supplier Rich Products’ Brownsville, TX manufacturing facility. The cumulative impact of NNMF’s investment will result in the creation of 132 full-time jobs, 70% of which will be filled by minority individuals.
Rich's Brownsville, TX plant produces frozen seafood and appetizer products. NNMF’s allocation will fund the acquisition of new equipment as part of the plant’s 150,000-square-foot expansion.
The NNMF investment utilizes capital from the NMTC program administered by the U.S. Treasury Department. Investment groups, such as NNMF, 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 Rich’s Brownsville manufacturing facility.
“We’ve seen a huge influx in customer demand within our growing seafood and appetizer business, so adding capacity is key for continued growth,” said Kevin Spratt, president, Rich Products’ U.S./Canada region. “As a proud member of the Brownsville community for over 60 years, we’re fully committed to strengthening our local impact with the right combination of associates, products and infrastructure. We’re grateful to NNMF for being a key supporting player in this project and are excited about the opportunities this will create for our business, the local community and the valued customers we serve every day.”
With limited skilled labor in the surrounding region, Rich’s will offer workforce training, such as computer literacy courses, in partnership with Texas Southmost College to community members at a discounted cost. The courses will prepare the local workforce for employment at Rich’s and throughout the region.
“The economic and community benefits from Rich’s expanded production line in Brownsville are noteworthy,” said Deborah La Franchi, CEO, National New Markets Fund. “This is a company that is committed to its associates—not only is it creating more than 130 jobs, but it’s offering quality wages and benefits in a community grappling with an 36% poverty rate.”
Rich Products received the NNMF allocation as part of a complex $25.5 million New Markets Tax Credit financing package. Dudley Ventures Community Investment Fund is the investor purchasing the NMTCs from each of the participating NMTC allocatees: NNMF and DV Community Investment Corporation (DV CID).
"Dudley Ventures is proud to support Rich’s expanded production line through our investment into the New Markets Tax Credits of NNMF and DV CID,” said Kyle Koupal, Vice President at Dudley Ventures. “We are committed to supporting projects that create accessible jobs in our nation’s most distressed communities.”