GAFFNEY, SC - Associated Hardwoods SC, Inc., secured $8.7 million in funding through a New Markets Tax Credit allocation secured from CEI Capital Management, LLC.
Associated Hardwoods will use the funding to build and operate a sawmill in Gaffney, SC. The company projects that bill, with an economic impact of $14.7 million estimated during the first four years of the project. Tax Advantage Group managed the funding process.
Wells Fargo Community Investment Holdings provided the investment and leveraged debt for Associated Hardwoods, to build a rural sawmill. The NMTC Program provides investors with a 39 percent federal tax credit claimed over a seven-year period. The tax credit proceeds create equity, which can be permanently placed in eligible low-income community projects.
Construction began immediately, and will create 93 direct and 23 indirect jobs. Once construction is complete, Associated Hardwoods expects to initially employ 15 full-time workers, expanding to 24 full-time employees in the first three years of operations.
The project is part of a community development plan in a rural census tract that is designated "Distressed" by the Appalachian Regional Commission. The New Markets Tax Credit Program is a $40 billion federal program intended to encourage private capital investment in eligible, impoverished, low-income communities
"The New Markets Tax Credits that tag was able to secure for us made this project possible," said Associated Hardwoods President Rick Jordan.
Associated Hardwoods will help ensure the Gaffney project has environmentally sustainable outcomes, including:
- Investing in new state-of-the-art grinding equipment that converts wood waste into fuel for the boiler
- Reclaimable wood fibers are used in other consumer products sold to the public.
- Improved recycling methods to decrease landfill waste by 74%.
- Utilizing a new negative draft boiler that increases efficiency while reducing carbon footprint.
Associated Hardwoods is FSC, PEFC, and SFI certified, which allows them to provide LEED certified materials to building projects. Associated Hardwoods is Certified Sustainable by Appalachian Hardwood Manufacturers through the U.S. Forest Service.
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