Three Roots Capital Receives $45 Million Allocation of New Markets Tax Credits

The innovative finance company was one of only two recipients in Tennessee 

Media Contact: Sarah Pope |

KNOXVILLE, Tenn. – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) recently awarded $5 billion in New Markets Tax Credits to 102 Community Development Entities (CDEs) nationwide. Three Roots Capital, an innovative finance company focused on economic and social impacts, is pleased to announce it is one of two recipients in Tennessee to receive $45 million from the New Markets Tax Credit (NMTC) Program.

Three Roots Capital seeks to use this allocation of federal tax credits to help finance industrial, manufacturing and commercial office projects in severely distressed regions of Appalachia, including East Tennessee. 

“Receiving this $45 million allocation of NMTCs allows Three Roots Capital to add a powerful tool to our financial toolbox.  Since our founding in 2016, Three Roots Capital has deployed more than $133 million of direct financing and fostered partnerships with 15 banks to better support our regional communities,” said Grady Vanderhoofven, President and Chief Executive Officer of Three Roots Capital. “With these New Market Tax Credits, we will continue this legacy and leverage these credits to create lasting economic and social impacts for years to come.”

About Three Roots Capital 

Three Roots Capital is an innovative finance company that provides loans and equity investments to small businesses and real estate projects in Tennessee and Appalachia. 3Roots was established to address the chronic need for investment capital in central and southern Appalachia. 3Roots supports small businesses, entrepreneurs, real estate projects, and communities in economically challenged areas throughout the region. 3Roots is certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI) and as a Community Development Entity (CDE). For more information, visit