Case Study

NMTC Case Study for Ampro Industries

May 25, 2021

Project

Ampro Industries, Inc. (Ampro) is located in the Forest-Frayser neighborhood of northwest Memphis. The area is plagued by high unemployment, low wages, and difficult circumstances. According to the Demographic Statistical Atlas of the United States, 63% of the population has no more than a high school diploma. The natural result of this lack of education is a community that ranks near the bottom for employment. The community ranks last for household income by neighborhood, coming in at exactly half of the greater Memphis area as a whole and only 1/3 that of the highest ranked neighborhood.

As one of the leading producers of multi-cultural hair care products in the country, Ampro is currently in an expansion mode. This project supports the acquisition of a new $6 million equipment line to expand production of their flagship product, Ampro Pro Style Gel. The project, situated in a low-income community with 29% unemployment, will generate an additional 25 full time jobs with high wages and benefits, in addition to the company’s current workforce of 59. All of the newly created jobs will be accessible to people with
limited education, criminal backgrounds and other traditional barriers to entry. Currently, the workforce is predominantly minority and new hires are expected to follow this trend.

The Financing

With a total project cost of $10.7 million, the sponsor was able to leverage an existing line of credit from Truist Bank and NMTC Equity from Truist Community Capital to fund $5 million of NMTC Allocation from Hampton Roads Ventures and $3 million of NMTC Allocation from Truist Community Capital. With the proceeds of the NMTC investment, the sponsor was able to not only install a new manufacturing line, but also access critical working capital to support the additional workforce to operate the new line. The project has catalyzed an additional $24
million of private sector capital related to a warehouse and distribution facility for the company in an adjacent building.

 

TOTAL PROJECT COST:

$10,708,953

 

NMTC ALLOCATION:

$8,000,000

 

FINANCING COMPLETE:

January 2021

 

PROJECT SPONSOR:

Ampro Industries, Inc.

 

CDES:

Hampton Roads Ventures / Truist Community Capital

 

NMTC INVESTOR:

Truist Bank

 

ADDRESS:

4171 Steele Avenue Memphis, TN

 

CENSUS TRACT:

47157010000

 

COMMUNITY OUTCOMES:

84 Direct Jobs

 

LOW-INCOME COMMUNITY:

Median Family Income 55% Poverty 37.4%
Unemployment Rate 29% Unemployment Ratio 3.49x FEMA Disaster Area

 

NMTC Case Study for Ampro Industries