A project by the Montana Community Development Corporation has been awarded top honors by the Novogradac Community Development Foundation for using new markets tax credits to assist Stinger Welding in Libby.
Montana CDC, a Missoula-based nonprofit small business lender, helped secure $17 million for Stinger Welding to complete a steel fabrication plant earlier this year in Libby. Stinger is an Arizona-based company that fabricates infrastructure for bridges.
The Montana CDC applies for tax credits from the U.S. Treasury, which in turn sells them to investors to get capital for startups and small businesses. Montana CDC President Dave Glaser said the fact that the Stinger project was located in an area with a struggling economy was an important factor in both securing the funds and winning the award.
Glaser’s organization received the top award for Operating Business of the Year last week at a conference hosted in Chicago focusing on new markets tax credits.
“Ultimately this is a very competitive program and the Stinger Welding project was a strong one,” Glaser said. “We’re basically (giving incentive) for businesses to invest in low-income areas.”
Lynn Dankowski, marketing manager for Montana CDC, said the Urban Investment Group at Goldman Sachs was the primary investor in the Libby project. With the investment, Montana CDC was able to get money up front for Stinger’s expansion in Libby. Dankowski said an important aspect of the program is finding investors who are willing to wait for their payback.
The award gained the attention of Montana U.S. Sen. Max Baucus as well, who congratulated Montana CDC on being one of the best financial development corporations in the country. According to a press release issued by the senator’s office, Baucus has worked to ensure that a fair share of the U.S. Treasury’s new markets tax credits are spent in rural areas.
“My hat goes off to Montana CDC for helping businesses create jobs in Montana by using the New Markets Tax Credit program,” he wrote in a press release. “This national recognition is one more way we can spread the word that Montana is a great place to invest and do business.”
Stinger Welding came to Libby in 2009 to establish a 105,000-square-foot fabrication plant, yet a lack of funds stalled the project until this year. When it’s in full operation, Stinger could employ up to 160 welders, including many who are being trained at the nearby Flathead Valley Community College Lincoln County Campus.