Have an idea for an Opportunity Zone project?
Opportunity Zones were created under the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97). Thousands of low-income communities in all 50 states, the District of Columbia and five U.S. territories are designated as Qualified Opportunity Zones. (Source – IRS.gov)
Nationwide, governors selected a total of 8,762 tracts as Opportunity Zones; 97% of those selected (8,532) were Low-Income Communities (LICs), while only 3% (230) were non LIC contiguous tracts (Theodos et al., 2018).
According to survey responses and other sources, most projects are real-estate focused. Through 2019, more than 6,000 Qualified Opportunity Funds had invested about $29 billion, based on partial data from the Internal Revenue Service (IRS). (Source – Novoco.com research report dated October 2021)
Last week we talked with one project owner who has a business idea who is looking for capital to launch an OZ business.
31.5 million people call Opportunity Zones home (35 million including Puerto Rico and the territories). The majority of Opportunity Zones residents, 57 percent, are non-white minorities, compared to 39 percent of the country as a whole. Black Americans are particularly over-represented in Opportunity Zones, constituting more than twice as large a share of the zone population as they do the national population. (Source – https://eig.org/opportunityzones/facts-and-figures)
Until 2008 this project owner had $1 million+ open credit lines in place. Even though he has an excellent credit score and industry experience, traditional financial institutions are not interested/not willing to approve his funding request. This is because there is no proof that the idea will work, no deal history, and not enough information to say “yes” to funding request.
Some funders and investors understand his business idea, but many do not. And when he has gotten a “no” in the past, there was never really a solid reason as to why they said “no” to the funding request.
Anyone in this situation would get discouraged and want to give up.
This gentleman has an excellent credit score, industry experience, lots of contacts and is passionate about the project. In an OZ a project like his also has an economic focus and making a social impact in the OZ, but he has been unable to access funding to move the idea forward.
We know how hard it is to access funding for new projects with no performance history. We have helped clients write their business plan, forecast cash flow, and clarify their pitch to engage investors, banks, and other funders. For Opportunity Zone (OZ) deals we collaborate with a network of OZ professionals through OZworksgroup.com to gain project clarity, resources, and improved access to funding.
Our 3-step process for OZ and other new projects is:
1. Consult on a complimentary basis to learn more about the idea and the client’s vision.
2. Prepare an Engagement Letter which outlines next steps and proposed fees.
3. Finalize Engagement and begin work to access desired funding.
Client information is confidential. We only accept client projects that are not in direct competition with other client projects. Client relationships are built on mutual trust and Integrity and professionalism in our work is guaranteed.
Schedule a call so we can talk about your project and how we can help you move forward. Go to nitablack.com to look at a sample of the tools we use to help business owners organize their idea and their business.
Take control of your business.
Move your new business idea forward.
Make funding pitches with more confidence and clarity.
Get better results that make it easier to access capital.
Our services help clients avoid months and sometimes years of delay in accessing capital, reduce the probability of funders saying “no,” and avoid continued project delays due to lack of capital.
Move from discouraged, with little or no capital, to “energized, project on go!” If you want to be effective/make a difference in OZ communities, schedule a consult so that we can get your idea moving!
Management Consulting | Business Planning | Strategic Planning | Accounting | Plan Implementation