Our Approach

How We Work

BWC’s business model for economic development is founded on three core principles:

Wealth Creation, Diversity of Collaboration, Community Building

We believe this is the current and future model for community development and we approach each engagement with these three principles guiding our process.

Using our core principles, our process leverages our unique ability to evaluate and recommend strategies with a triple bottom-line view. We approach all organizations, whether for-profit or not-for-profit, as business enterprises with the ability to create value and make an economic impact on their communities.

Our proven, proprietary Value Creation Process® integrates business strategies with financial strategies to help organizations unlock their potential to create value and develop solutions to drive growth.


Our Approach in Action

“GAP” SOLUTION - NEW MARKET TAX CREDITS (NMTC)

What Are NMTC?
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period.

Since the NMTC Program's inception, the CDFI Fund has made 749 awards allocating a total of $36.5 billion in tax credit authority to CDEs through a competitive application process. This $36.5 billion includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority to be used for the recovery and redevelopment of the Gulf Opportunity Zone.

Why a NMTC Structure - Gap Equity?
The pricing on the Federal Credits has become very attractive. An allocation of $10 million in NMTC can generate approximately $3 million in funding to complete a qualified project. At the end of 7-years the NMTC equity is forgiven; hence, reducing the internal funds needed and generating a greater return on investment. The rule is for every $10 million in allocation 100 jobs are created.

Implementation - How it Works

  • Check site eligibility and identify any other subsidies
  • Understand the project, community impacts, need and funding gap
  • Outline the business case
  • Identify potential funding vehicles based on the aforementioned
  • Determine if the project is viable to continue
  • Prepare the development budget, sources and uses, preliminary structure, project description and comprehensive Executive Summary
  • Understand the number of jobs created and retained
  • Complete intake forms to better focus the project and enhance its marketability

Our Services

  • Project "Operationalization"
  • Public/Private Partnership Strategy
  • Organizational Capacity Building
  • Business Enterprise/Project Support and Analysis
  • Structured Layered Financing

  • Project Planning and Support
  • Financial Planning
  • Ratio Analysis
  • Debt Policy/Planning
  • Debt Issuance Financial Advisory

  • Business Planning/Strategy Development
  • Operating Strategy Development
  • Interim Management
  • Mergers & Acquisitions/Divestiture/Harvest Strategy
  • Joint Ventures/Alliances/Partnership Planning & Execution

© BWC Consulting.
All Rights Reserved.

Contact Information

North Carolina Office:
P.O. Box 5183
Greensboro, NC 27435
Phone: 336.691.5786
Fax: 919.688.8478
Email: info@bwcconsulting.com
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