EO Companies

The Innovate Fund has deployed NMTC allocation in Virginia for the very first time, expanding TIF’s community outcomes beyond its traditional service area. TIF provided a $5.5M allocation to EO Companies in order to finance the renovation of a former 87,000 SF shopping center in Abingdon, VA. The facility will then be repurposed into a multi-use childcare and workforce development center that serves the region’s youth. While Virginia was not in TIF’s service area at the time, the community’s needs were so strongly aligned with TIF’s investment strategy that The Innovate Fund strategically decided to incorporate the state into its service area in 2024.

Southwest Virginia is in the midst of a growing childcare crisis in which a lack of capacity matched with a high demand have increased the cost of childcare far beyond that which low-income parents can afford. As a result, lack of access to affordable childcare has kept parents out of the workforce and families financially constrained. Additionally, businesses across the region are running with a staff deficit and have expressed the urgent need for stronger competency-based career and technical skill development in the emerging workforce. Conversely, 10% of high school graduates have the perception that there are no high-paying jobs in the area and are planning to move away for better career opportunities. To address both issues, EO Companies’ multi-use campus will also house both a rural workforce development facility and childcare center.  

Due to strong community support for the regionally transformative project, EO Companies was able to secure substantial grants and donations during its capital campaign. Without $12.5M in NMTC financing, EO Companies would have had to either divert funds away from its other programmatic needs or reduce the scale and scope of the project. Either option would have been detrimental to the community and put its integral community-focused outcomes at risk. 

Within the renovated facility, the Career Commons will provide over 30,000 K-12 students across SWVA with hands-on career simulation. The activities and curriculum will align with the Virginia Department of Education’s 17 career clusters and help spur interest in manufacturing and STEM jobs. The facility will also host an early childhood education center that will serve 300 children ages 0-5. To provide these community outcomes, the project estimates creating/retaining 121 permanent jobs, of which 70 (60%) are quality jobs with high wages and benefits while 113 (93%) are accessible to LIPs. These outcomes are an integral step in providing economic relief to Southwest Virginia and alleviating the local childcare crisis.

“With their investment into the Hub, TIF has locked arms with our region, and we are grateful for that commitment to community good.” –Travis Staton, President & CEO of EO Companies