Advantage Capital Impact

masonWelcome to the Advantage Capital Partners Impact Blog. Over the past 20 years, Advantage Capital Partners has invested more than $1.4 billion dollars in over 500 small businesses helping to create more than 27,000 jobs in low-income areas across the country. Entrepreneurs and their employees play a huge role in our success. Through the blog, we hope to chronicle the people and products that make up Advantage Capital Partners’ portfolio of companies. These companies are powering new innovations and creating new opportunities for people from all walks of life nationwide. Thanks for joining us.

What’s all this talk about POSS?

What’s all this talk about POSS?

Officially known as Polyhedral Oligomeric Silsesquioxane, POSS is a chemical additive that can create new material combinations from ceramic and organic materials or increase the favorable properties, including strength and longevity, of a variety of products. Basically, POSS allows you to create new, unique and revolutionary materials. Developed by Hybrid Plastics, POSS technology was deemed “in the strategic national interest of the United States” by President Bush in 2005 and has received several “Oscars of Invention” (otherwise known as the R&D 100 Awards), along with a host of other accolades. (Awards). Even a brief look at its many uses makes it easy to see why. The Missile Defense Agency, Air Force and Navy make extensive use of POSS to develop inexpensive radiation shielding and reduce the flammability of ship composite structures. NASA uses POSS to create high-tech space plastic and develop other technologies to improve space travel and research. This impressive and versatile technology has been used to preserve historic artifacts, including American Indian hunting arrows and the sunken Confederate submarine H.L. Hunley. It’s also been put to work in dental bonding systems, clotting blood in non-compressible wounds and as the first ever synthetic organ transplant. And the Oscar goes to… POSS. Due to the rapid adoption of liquid POSS, Hybrid Plastics recently announced the expansion of its production of the revolutionary product. This growth will require a larger staff and a larger manufacturing capacity for its facility in Hattiesburg, Mississippi, both of which have been made possible in part by Advantage Capital Partners and the Mississippi Small Business Investment Company Act. Liquid POSS has already been well received by the personal care, coatings and paint industries, and is expected to have revolutionary applications throughout the world, especially in oil and gas production and national defense. With the increased production and improved usability of its new liquid form, the future of POSS looks bright—and...

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Senator Gunn Talks Access to Capital

Senator Gunn Talks Access to Capital

Recently, the Vice President of Government Affairs, Gary Salamido, sat down with North Carolina Senator Rick Gunn to discuss the evolving business landscape in North Carolina and innovative ways to spur job creation in the most economically-distressed and rural areas of North Carolina....

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Portfolio Company Highlight: Broadway Lodging

Portfolio Company Highlight: Broadway Lodging

Last October, we were pleased to be able to host Congresswoman Vicky Hartzler for a tour of The Broadway Hotel in downtown Columbia, Missouri. The group toured the construction site where Congresswoman Hartzler had the opportunity to meet all of the hotel leadership and staff overseeing construction and the upcoming launch. During the visit, entrepreneur/owner David Parmley shared his story of being turned down 20 times, including by local banks, before Advantage Capital Partners and the New Markets Tax Credit program made funds available to bring the project to reality. The $4.3 million dollar investment was part of a total of $20 million project that has allowed the company to demolish a dilapidated hotel that diminished the eastern entrance into downtown Columbia and replaced it with a striking, first-class hotel. The hotel project has catalyzed additional projects in the adjacent area including a $12 million city parking garage. It’s not the first collaboration between Parmley and Advantage Capital Partners in Columbia.  The first successful project involved the razing of the old Campus Inn which was replaced by a state of the art Hampton Inn near Faurot Field.  The $4.3 million New Markets investment in the Broadway Hotel project was made with the private money brought in by the New Markets incentives in the Stadium Lodging project.  Sounds odd… but that’s right.  The credits in Stadium Lodging attracted private investors whose money must be at work in Missouri investments for 7 years under the New Markets program.  So, the new project on Broadway, with its more than 140 jobs, was financed without the use of any new tax credits.  That’s the kind of taxpayer return on investment we strive to accomplish with our double bottom line approach. We appreciated the opportunity to lay out these New Markets success stories to Congresswoman Hartzler and her staff, Steve Walsh and Zach Brown, as well as Derek Coats with Senator Blunt’s office. Once construction is completed and the Broadway opens this year, the company will create approximately 90 new jobs. Additionally, this project has led to more than 50 construction jobs....

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Portfolio Company Highlight: Kentucky Chrome Works

Portfolio Company Highlight: Kentucky Chrome Works

Question:  What do Advantage Capital Partners and the 2014 North American Car of the Year have in common?  Answer:  A sweet set of wheels produced by none other than Kentucky Chrome Works located in rural Horse Cave, Kentucky. The Corvette Stingray, completely redone last year for its seventh generation, recently won the 2014 North American Car of the Year Award  at the Detroit Auto Show and has received rave reviews for its 460 horsepower, 6.2-liter V-8 but it’s the luxury alloy wheels manufactured by Kentucky Chrome Works that has our motors running. Located in Horse Cave, KY, Kentucky Chrome Works (KCW) manufactures luxury alloy wheels and is the exclusive chrome plate supplier for the Corvette. In 2010, owner Ray Carcione moved his business from Ohio to partner with RONAL Speedline, and began to provide chrome-plated alloy wheels for luxury vehicles. Being focused on bringing jobs back to the United States, Ray worked with Governor Steve Beshear to locate the company in a severely distressed, low-income section of Hart County. When Ray first visited the plant in December of 2009, he found a 40 year old plant that was locked down and not in good shape. Before any manufacturing could begin, the facility had to undergo a tremendous make over. After receiving a grant from the Kentucky Economic Development Finance Authority and investing $4 million of his own money, Mr. Carcione began to gut the existing plating line and begin installation of new equipment designed specifically for decorative plating on aluminum alloy wheels. He upgraded the infrastructure to ensure adequate power and ample heat for the facility as well as installed a state-of-the-art waste water treatment system and added all new integrated controls and an automated hoist line. In 2012, BizCapital, the small business lending division of Advantage Capital Partners, provided Kentucky Chrome Works with funding through the federal and Kentucky New Markets Tax Credit programs. This funding enabled KCW to expand its production line and provided patient working capital during the retooling of the Corvette plant. They have since hired 20 new employees while retaining 54 existing jobs.  The company now has 85 employees and supplies over four million wheels per year....

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Portfolio Company Highlight: Oregon Entrepreneurs meet with Legislators

Portfolio Company Highlight: Oregon Entrepreneurs meet with Legislators

 On December 11th, 2013, entrepreneurs from Advantage Capital Partners portfolio companies Brew Doctor Kombucha, Hog Wild Toys and Bright Boy International shared their personal stories of how the Oregon New Markets program has helped them succeed in finding the growth capital they need to fuel the growth of their companies. Each entrepreneur described their struggles in finding funding to grow their company and how important the Oregon New Markets program was to addressing this critical need. The lunch event was an opportunity for Representatives Jules Bailey, Tobias Read, and Julie Parrish to interact directly with the entrepreneurs, companies and projects benefitting from investments made possible by the Oregon New Markets program and Advantage Capital Partners, Enhanced Capital, Stonehenge Capital, and Roeder and Co. Seeing firsthand the tea, toys and electronics being produced and distributed thanks to the Oregon New Markets program, legislators came away with a better sense for the breadth of companies that the New Markets program is able to reach. These companies helped to demonstrate the flexibility and versatility of New Markets Tax Credits and the Oregon policymakers appreciated the personal stories describing the challenges small businesses face in finding the funding they need to make their business a...

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Advantage Expansion: Advantage Capital Partners Announces $19.2 million fund in Arkansas

Arkansas became the 12th state to enact a state-level new markets policy after the Arkansas legislature overwhelming passed the New Markets Job Act. This legislation was molded after the successful federal New Markets Tax Credit program and is an economic development program that encourages private sector investments in promising small businesses located in distressed communities throughout the state.

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Portfolio Company Highlight: Camgian

Portfolio Company Highlight: Camgian

Camgian is a leading provider of advanced sensing technologies and mobile networking solutions. Based in Starkville, Mississippi, Camgian produces leading-edge innovations that are enabling a new generation of high-performance wireless information technologies and products for the defense, security, industrial and commercial markets.

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