Thiel Tool Receives $3.2 Million In Funding From BizCapital
Missouri New Markets Development program boosts St. Louis manufacturer
ST. LOUIS, May 26th, 2011 – BizCapital, the small business lending division of Advantage Capital Partners, provided $3.2 million in New Markets financing to Thiel Tool & Engineering, a woman-owned metal stamping manufacturer located in north St. Louis. The funding will allow the company to retain 50 full-time employees and enable additional growth over the next 12 months.
Thiel Tool & Engineering, Inc. was established in 1945 and the company has since upgraded their facilities with state-of-the-art metal stamping presses and completed a 30,000 square foot addition to their existing 70,000 square foot facility. Thiel Tool is a dominant player in the manufacturing of medium gage, deep draw stamped products in the Midwest serving the automotive, transportation, and construction markets.
“Our business suffered from the economic downturn over the last several years just like many others,” said Michele Thiel, President of Thiel Tool. “When we were unable to secure funding from conventional lenders we turned to BizCapital. Their flexibility and willingness to work with us on financing options means we can retain our employees and continue to operate our business here in St. Louis.”
The federal New Markets Tax Credit program and the Missouri New Markets Development program are designed to enable job growth and retention in communities that historically have been underserved by traditional sources of investment capital. BizCapital’s investment in Thiel Tool was made in connection with the New Markets programs and would not have been possible otherwise.
“The Missouri New Markets Development program plays a crucial role when a small business is seeking to obtain adequate financing in this economic climate,” said Rick Hummell, principal at Advantage Capital Partners. “Although Thiel Tool has a long-established presence in the city of St. Louis, the company was turned away by their existing lender. The New Markets program will allow Thiel Tool to keep all 50 of their current employees and hopefully expand in the future.”
“The Missouri New Markets Development program is a powerful resource for promising small businesses, enabling them to grow and prosper in our state,” said State Representative Chris Carter (D-61). “I am pleased to see the program fostering investment in my district.”
About BizCapital and Advantage Capital Partners
BizCapital (www.biz-capital.com) is Advantage Capital’s non-depository financial institution offering competitive loans to small and medium-sized companies. BizCapital is recognized as a leading government-guaranteed lender, helping small-to-mid-sized businesses grow and prosper, while fostering stronger economic growth in local communities. With offices in St. Louis, New Orleans and Jackson, BizCapital invests across many types of businesses and offers loans from $250,000 to $10 million in the form of SBA, USDA, mezzanine, and well-secured real estate loans.
About the New Markets Tax Credit program
The New Markets Tax Credit program, administered by the U.S. Department of the Treasury, encourages private-sector investment in economically distressed communities through tax incentives. In a highly competitive allocation procedure, the Treasury Department awards the tax credits based on applications submitted for each tax year. Advantage Capital has participated in the New Markets program since 2003, raising private capital for investment in low-income communities. These investments have spurred economic growth through innovative business ventures and job creation throughout the United States.
About the Missouri New Markets Development program
Enacted in 2007, the Missouri New Markets Development program encourages investment in promising small businesses located in distressed communities throughout the state. The program enables up to $186 million of capital investment in Missouri’s small businesses. The state program attracts investment in low-income communities through a state tax credit modeled after the federal New Markets Tax Credit. The goal of the program is to attract large, long-term investors to Missouri’s low-income communities, promoting new expansion, creating new job opportunities and building on existing growth in the state.
Ryan Winkler, Advantage Capital Partners