HRIF’s Strategic Role in Economic Development
Heartland Regional Investment Fund (HRIF), backed by the St. Louis Economic Development Partnership (STL Partnership), has successfully secured a $4 million loan through the New Markets Tax Credits (NMTC) program for Alton Steel Inc. (ASI). HRIF is a vital player in stimulating economic development in low-income areas by offering essential financing to businesses like ASI. This deal marks a significant step in HRIF's mission to promote growth in underserved communities, particularly in Southwestern Illinois, where the steel industry plays a crucial role in the local economy.
The NMTC program, facilitated by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund, enables HRIF to provide financing to businesses in economically distressed regions. The loan is designed to aid ASI in working capital, enabling the company to expand and improve its operations, thereby driving regional economic growth and enhancing employment opportunities in the area.
Alton Steel Inc.’s Impact on the Region
Founded in 1967, Alton Steel Inc. (ASI) has a long history in the steel manufacturing industry, beginning with supplying steel for New York’s iconic World Trade Center. Over the decades, ASI has continued to evolve and innovate, establishing itself as a leader in the Special Bar Quality (SBQ) marketplace. This sector of the steel industry is focused on producing high-quality, specialized products that meet the precise demands of various industries.
ASI’s product line includes rounds, round-cornered squares, bar-in-coil, and a comprehensive range of carbon and alloy steel grades. These products are used by over 100 customers in industries ranging from automotive to construction. ASI’s dedication to producing sustainable steel products has reinforced its position as a key player in the steel manufacturing industry, contributing to both the regional and national economy.
Financing for Growth: A $4 Million Loan
The $4 million loan secured by ASI will directly contribute to its growth plans in Southwestern Illinois. The funding will be used as working capital, enabling ASI to scale its operations. As one of the largest manufacturers in the region, ASI’s growth will significantly benefit the local economy by creating new job opportunities and enhancing its manufacturing capabilities. This expansion is expected to boost employment in a region where manufacturing jobs are critical for economic stability and growth.
The loan also reflects HRIF's commitment to fostering economic recovery and revitalization in communities that have traditionally faced financial challenges. By supporting ASI's operations, HRIF is facilitating the creation of more high-quality jobs for local residents and improving the overall economic environment of Alton, Illinois.
The Role of New Markets Tax Credits
New Markets Tax Credits (NMTCs) are an integral part of the federal government’s strategy to support business development in low-income communities. The U.S. Department of the Treasury awards tax credits to Community Development Entities (CDEs) like HRIF, which in turn provide loans and investments to businesses that will stimulate economic growth and create jobs in underserved areas.
In this case, HRIF’s loan to Alton Steel Inc. is an example of how NMTCs are being used to foster long-term economic improvements in regions that have historically faced economic challenges. By offering tax credits, the federal government encourages private investment in businesses that can drive job creation, infrastructure improvements, and local development.
St. Louis Economic Development Partnership’s Focus on Local Development
The St. Louis Economic Development Partnership (STL Partnership) plays a key role in facilitating investments like this one through HRIF. With a focus on revitalizing local economies and boosting job creation, STL Partnership works with businesses and investors to identify opportunities for economic development in the St. Louis metro area, including nearby Illinois counties.
STL Partnership’s efforts are concentrated on areas in Missouri and Illinois that qualify as low-income, including St. Louis and St. Charles Counties in Missouri, as well as Bond, Clinton, Madison, and St. Clair Counties in Illinois. The loan to ASI highlights STL Partnership’s strategic approach to developing and strengthening regional industries, ensuring sustainable growth and development in areas that need it most.
The Future of Alton Steel Inc. and the Region
As ASI continues to grow with the help of the $4 million loan, it will likely remain a critical player in the regional economy. Its historical legacy, combined with its forward-thinking approach to steel production, positions ASI as a vital employer and economic contributor in Alton, Illinois.
The investment by HRIF is expected to further establish ASI as a leader in sustainable steel manufacturing, supporting the regional economy by providing quality jobs and strengthening the supply chain. The company’s ability to expand operations and innovate in the steel industry will be instrumental in maintaining its position as a top steel manufacturer in the U.S.
Key Takeaways:
• HRIF secured a $4 million NMTC deal for Alton Steel Inc. (ASI) in Alton, Illinois.
• The loan will support ASI's growth and create job opportunities in the region.
• ASI has a rich history, including supplying steel for the World Trade Center in 1967.
• ASI is a leader in producing Special Bar Quality products for various industries.
• The NMTC program, backed by the U.S. Department of the Treasury, incentivizes private investment in low-income areas.
• HRIF focuses on financing projects in distressed communities across Missouri and Illinois.
• The loan is expected to drive job creation, economic growth, and regional stability.
