Dakota Business Lending is delighted to announce that they have closed a $7,500,000 New Markets Tax Credit (NMTC) allocation to support Tecton Products, LLC and the expansion of their manufacturing facility in Fargo. The new 150,000 square facility is being built on the site of Tecton Product’s existing Fargo location. This will allow Tecton Products to increase its product line capabilities, upgrade and expand its tool and die equipment, add office space and create a total of 140 full-time jobs in over its 250 existing employees over the next seven years.
The more than $30 million expansion project was eligible for NMTC funding because it is located in an eligible, high-stress, low-income area of North Dakota. It will also bring high-quality jobs for low-income and minority populations, which will include a comprehensive benefits package, quality wages, and training and education opportunities.
The Tecton Products expansion project would not be possible without the $7.5 million NMTC financing from Dakota Business Lending, which is helping fill a funding gap and ensure Tecton Products can meet the current demand for its products. Funding from the NMTC program allows the company to immediately move forward with its expansion efforts and create job creation opportunities without delay. “The New Markets Tax Credit Program helps companies like Tecton Products continue to grow and invest in our community,” said Tom Gohdes, Chief Operating Officer, Tecton Products. “The program brings value to our community by helping companies like ours create well-paying jobs that provide people with careers in manufacturing.” Dakota Business Lending President and CEO Steve Dusek added, “Dakota Business Lending is proud to offer this financing opportunity to Tecton Products and other areas of the state. Expansion projects like these not only create quality jobs, but stimulate economic development in our communities.
Dakota Business Lending’s NMTC allocation for this project was monetized by selling the tax credits to an investor in exchange for 7 years of income tax credits as per the program. The actual investment of the allowance in the project is around 17-20% after selling tax credits and the cost of financing. Tecton Products has also partnered with several other finance and economic development entities to make this expansion possible, including: The Greater Fargo Moorhead Economic Development Corp (GFMEDC), City of Fargo, Cass County and West Fargo Public Schools.
Dakota Business Lending received a total of $30 million in NMTC allocation in September 2021 and is working to invest the remaining $22.5 million in other eligible expansion projects statewide. “The NMTC program will have a significant impact on many families, businesses, states and local economies,” Dusek added. “We are proud to be among the first to use this program to help revitalize North Dakota communities.”
About the New Markets Tax Credit Program (NMTC) – Established in 2000 through the Community Renewal Tax Relief Act, the NMTC is managed and administered by the United States Department of Treasury. In 2021, the program has allocated a total of $5 billion to Community Development Entities (CDEs) across the country through a competitive and challenging application process, who will then use their allocations to further the program’s mission. : encourage and relaunch investment in income census areas to create jobs, bring new opportunities to eligible areas and fill a funding gap for transformative projects.
About Tecton Products – A member of the Marvin family of companies, Tecton Products was founded in 1992 and became a wholly owned subsidiary in 2008. They are the leading designer and manufacturer of quality custom fiberglass pultrusions, primarily used for Marvin products such as windows and door frames, as well as products for other industrial sectors including agriculture, HVAC and refrigeration. The manufacturing company currently has over 350 employees at its three locations in the United States, including Fargo, ND.
About Dakota Business Lending – Founded in 1982, Dakota Business Lending is North Dakota’s oldest, largest and most experienced 504 CDC and the first North Dakota-based financing entity to be chosen by the U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund. to receive an NMTC allowance. With staff throughout North Dakota and Montana, Dakota Business Lending serves North Dakota, Montana and five western Minnesota counties. The mission of this private, not-for-profit entity is to provide small business financing solutions through collaborative partnerships in a supportive and creative environment that grows the economy and creates or maintains quality jobs. Since its inception, Dakota Business Lending has provided more than $550 million in loans, with a total project impact of over $1.2 billion, to small businesses and local economies.