Developments > Apex Resource Technologies
A privately-owned company in western Massachusetts -- Apex Resource Technologies -- got an infusion of $5 million, giving the company the working capital needed to expand its business and workforce. In 2009, MHIC teamed up with Pittsfield Cooperative Bank to craft an innovative loan structure combining a bank loan with gap financing available through the use of the New Markets Tax Credit program. The bank provided a $1 million working capital loan to Apex Resource Technologies (Apex), and a $3 million loan to MHIC that was used to access an additional $1 million in tax credit capital, which was, in turn, loaned directly to Apex.
Apex provides engineering, design and manufacture of injection molding products, including plastic components used in the medical, industrial and communications fields. It recently added a promising new product line of implantable medical devices for use in surgical procedures. Apex sought financing so that it could exploit opportunities for growth in the medical device and implantable industry. A company with world-wide sales, Apex currently employs approximately 60 people; it expects to grow 20-30 percent over the next few years.
This project is notable because the New Markets program most often has been used by MHIC to finance debt associated with real estate development. In this case, it was used to provide permanent working capital for business expansion.
Apex Resource Technologies
Project at a Glance:
Location:
Pittsfield
Development Type:
Commercial
Project Type:
Historic renovation/redevelopment
MHIC Financing:
$3,948,000 in NMTC financing
Sponsor:
Apex Resource Technologies Inc.
A privately-owned company in western Massachusetts -- Apex Resource Technologies -- got an infusion of $5 million, giving the company the working capital needed to expand its business and workforce. In 2009, MHIC teamed up with Pittsfield Cooperative Bank to craft an innovative loan structure combining a bank loan with gap financing available through the use of the New Markets Tax Credit program. The bank provided a $1 million working capital loan to Apex Resource Technologies (Apex), and a $3 million loan to MHIC that was used to access an additional $1 million in tax credit capital, which was, in turn, loaned directly to Apex.
Apex provides engineering, design and manufacture of injection molding products, including plastic components used in the medical, industrial and communications fields. It recently added a promising new product line of implantable medical devices for use in surgical procedures. Apex sought financing so that it could exploit opportunities for growth in the medical device and implantable industry. A company with world-wide sales, Apex currently employs approximately 60 people; it expects to grow 20-30 percent over the next few years.
This project is notable because the New Markets program most often has been used by MHIC to finance debt associated with real estate development. In this case, it was used to provide permanent working capital for business expansion.