Three Roots Capital (3Roots) has fully deployed its $50 million allocation of tax credits from the CY2023 Community Development Financial Institutions (CDFI) Fund’s New Markets Tax Credit (NMTC) Program. With this allocation, 3Roots made two $25 million investments in rural manufacturers: Eurotranciatura USA in Paris, Tennessee, and Tate Access Floors in St. Paul, Virginia.

3Roots’ NMTC strategy focuses on providing flexible, Qualified Low-Income Community Investment (QLICI) loans to manufacturing and office projects that create quality, accessible jobs in highly distressed communities in Appalachia and the Delta regions. NMTC financing is one of the key tools 3Roots uses to address the region’s limited access to capital and the need for sustainable job opportunities.

“NMTCs are among the most efficient and effective economic development tools ever created. Deploying these credits lets us support job-creating companies in some of the most distressed areas we serve,” said Chris Miller, Chief Financial Officer of Three Roots Capital.

Eurotranciatura USA (Euro), a leading employer in Paris, Tennessee, manufactures steel components for electric motors, including those used in generators and vehicle systems such as windshield wipers, air conditioning and windows. Paris, located in Henry County, is a non-metro, severely distressed low-income community.

These tax credits enable Euro to attract the funding needed to purchase inventory, acquire raw materials, invest in equipment, and hire additional employees. This investment will support Euro’s expansion into high-growth industries such as data centers and electric vehicles. As a result of this project, Euro will continue to support its 177 current employees and expects to hire 25 new full-time employees, all of whom will receive full benefits.

Highlighting the significance of this investment, Eurotranciatura Chief Operations Officer Matteo Fassio said, “What makes Euro successful at the end of the day are the employees. Their opportunity at work helps them provide for their families and contribute to their communities.”

Tate Access Floors Inc. (Tate), based in St. Paul, Virginia, is a global manufacturer of raised access floors, airflow management solutions, and other infrastructure components for data centers. Tate’s products help cloud computing and artificial intelligence organizations enhance energy efficiency, construction speed and operational performance of data centers.

Tate is acquiring and renovating a formerly vacant facility, transforming it into a 284,000-square-foot complex focused on data center manufacturing. Funding accessed because of the NMTCs will accelerate investments in equipment and workforce support at the new facility. Tate plans to implement a structured three-week onboarding process to ensure new employees are fully prepared. This expansion will create 170 new permanent jobs, along with 61 temporary construction jobs needed for the renovation. The addition of these jobs plays a critical role in advancing the economic development strategies of both St. Paul and Russell County.

Tate’s impact on the surrounding communities is evident. “This project is a home run. The magnitude of the impact—the jobs and redevelopment—it’s hard to put a dollar on it,” said Chairman of the Russell County IDA, Ernie McFadden. St. Paul Town Manager Chad Monday added, “Tate cares about the community. We are very thankful to have them.”

Three Roots Capital is proud of $50 million of NMTC financing for rural manufacturers in Tennessee and Virginia. These investments demonstrate 3Roots’ continued growth and commitment to pursuing high-impact projects that strengthen communities in the Delta and Appalachian regions.