HAMMOND, La., June 11, 2008 (PRIME NEWSWIRE) -- BizCapital, the small business lending arm of Advantage Capital Partners, recently provided a $3.4 million construction loan to American Truss, LLC, a fully-automated wooden roof and floor truss manufacturer. The loan will be used to support the construction and equipment needs of a new facility in Hammond, La.
"In the aftermath of Hurricanes Katrina and Rita, rebuilding efforts are crucial and new technologies must be employed to speed up the recovery," said Ann P. Borne, founder of American Truss. "American Truss will play an important role with a plant designed for maximum efficiency and automated processes that will cut both costs and time involved in constructing homes and commercial buildings."
American Truss plans to build a 56,250 square foot, state-of-the-art structural component manufacturing plant. The company will mass produce roof and floor trusses to serve the construction industry in the gulf south region. The entire manufacturing process will be computer-driven based on both stock and custom designs provided by architects and builders. The computer system is also designed to maintain building requirements for all of Louisiana and Mississippi; therefore a job can be quickly designed while ensuring building code compliance.
"The American Truss plant will be the most technologically advanced manufacturing facility of its kind," said Richard Pearce, vice president of business development for BizCapital. "Ms. Borne has developed a solid business plan with a competitive advantage. American Truss is the only automated truss manufacturer within a 150-mile radius. The new plant will also stimulate area employment, creating much-needed jobs."
BizCapital's investment in American Truss was made in connection with the federal New Markets Tax Credit (NMTC) program. This innovative initiative has facilitated the flow of billions of dollars of private capital into states and communities in need of economic development. These investment activities help to grow the local tax base, create job opportunities for local residents and develop a base of wealth from which these communities can continue to expand.
About BizCapital and Advantage Capital Partners
BizCapital (www.biz-capital.com) is a 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 New Orleans, Jackson and St. Louis, 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.
BizCapital's parent firm is Advantage Capital Partners (www.advantagecap.com), a venture capital and small business finance firm focused on investing in promising companies located in areas underserved by traditional venture capital. With offices and partners in New Orleans, St. Louis, Austin, Washington, D.C. and other U.S. cities, Advantage Capital has raised more than $950 million in institutional venture capital since 1992.
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 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.