KANSAS CITY, Mo. (1/26/12)--Mazuma CU, Kansas City, Mo., has signed a financing agreement with American Performance Technologies (APT), a manufacturer of small engines used for motor, power sports and lawn equipment.
The deal will help APT expand its operations facility and create 88 new jobs in the Kansas City metro area.
Mazuma CU, with $452 million in assets, will provide $3 million in debt financing as part of an overall $7.7 million investment made by APT.
"Our Business Resources department has done an incredible job in fostering this relationship with American Performance Technologies," said Brandon Michaels, Mazuma CU president/CEO. "We are eager to help small businesses succeed and will continue to make the resources available to do so."
APT qualified for financing under the New Market Tax Credits (NMTC) Program, a federal tax program designed to help direct the flow of capital into low-income communities. The program provides corporations with a tax-credit incentive and uses the CDE as a portion of it. The CDE uses investments to provide financing to qualified business or real estate development projects located in low-income communities.
APT qualified for NMTC financing assistance from the Kansas City, Mo., Community Development CDE. Since 2010, CDE financed more than $50 million in investments for low-income communities in Kansas City.
The Credit Union National Association and credit unions have been pressing for Congress to raise the member business lending limit to 27.5% of assets from the current 12.25% of assets. Doing so would mean $13 billion available to lend to small business owners. Injecting that amount into the economy would create roughly 140,000 new jobs at no cost to the taxpayer.