FlyGuys
New Markets Tax Credits in the News
August 23, 2021
The New Markets Tax Credit (NMTC) Program is a federal financial program developed by the United States Department of the Treasury to incentivize community development and economic growth using federal tax credits allocated by private investors in disadvantaged and distressed communities. The private investors are financial intermediaries that provide loans and investments administered by the US Treasury’s Community Development Financial Institutions (CDFI) Fund. The local financial intermediaries are known by the program as Community Development Entities (CDEs). In this biweekly blog, LifeCity will discuss key developments related to the NMTC Program.
Projects
FlyGuys is a drone service based in Lafayette, Louisiana that delivers aerial data collection solutions for many commercial industries and public sector entities including energy, agriculture, construction, engineering, and transportation. The drone services market is projected to reach $63.6 billion by 2025 (up from $4.4 billion in 2019). Advantage Capital is a venture capital firm and small business lender that recently closed a $2 million investment in FlyGuys. The funding, in connection with New Markets Tax Credits, will help FlyGuys expand sales and marketing, purchase new equipment and drones, and triple its Lafayette staff in the coming years. As drone use expands and business grows, FlyGuys expects to create up to 29 new, full-time jobs in the Lafayette area. These positions will be based primarily in sales, project management and software development.
For the first time in 60 years, a new Catholic school is under construction in Baltimore, Maryland. The Mother Mary Lange Catholic School was recently blessed by Archbishop William E. Lori. Founder and namesake Mother Lange had a lifelong commitment to educating Black youth in the Baltimore region beginning nearly 200 years ago. The 65,000 square foot school will open its doors to over 400 students on August 30, 2021. Students from Pre-K through 8th Grade will have access to a turf field, a library, a media center, a chapel, a gymnasium, a cafeteria, art studios, and STEM labs. Funding for the construction of the school came in part from NMTC allocations. Fundraising also included the establishment of an endowment fund to aid low-income students with tuition expenses. Officials estimate 70–73% of students will have some sort of financial aid this Fall. Once the school is enrolled to full capacity, 80–90% of students will have tuition assistance.
All of these great projects and more are underway across the US. LifeCity specializes in impact assessments and third-party validation services for CDEs engaged in NMTC financed projects. As a third-party, we help CDEs and other companies measure, manage, track, and report their impact to ensure a credible and transparent message. Our services are available across all stages of the NMTC allocation process and provide personalized impact reports and videos that support clients, projects, and communities.