The Innovate Fund has announced a significant New Market Tax Credit investment of $5.5M in EO Companies
Abingdon, Virginia (July 31, 2024) – The Innovate Fund (TIF), a Community Development Entity, has announced a significant New Market Tax Credit (NMTC) investment of $5.5M in EO Companies (EO), a non-profit organization that focuses on education, workforce innovation, and wellness so that future generations can thrive in a rapidly evolving world.
TIF’s Program Manager and Abingdon local, Emma Wyatt, expressed enthusiasm and full support for this deal when she announced, “This partnership with EO is in perfect alignment with TIF’s mission and values. Our hope for a resilient community lies in our future generations, and this new facility will help provide our young people with the tools necessary to break the cyclical nature of poverty.”
TIF’s NMTC investment will help finance the renovation of a former 87,000 SF shopping center in Abingdon, VA that will be repurposed into a multi-use childcare and workforce development center. The Regional Workforce and Child Development Hub will come at a crucial time, as Southwest Virginia is in the midst of a growing childcare crisis. With demand for childcare far exceeding the community’s current capacity, costs have risen beyond what many parents can afford. As a result, this lack of access to affordable childcare has kept families out of the workforce and families financially constrained. In a community which is already suffering from a 29% Poverty Rate, this becomes one more economic disadvantage to overcome.
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. With the addition of TIF’s $5.5M in NMTC financing, EO Companies is one step closer to the needed philanthropic, public, and private funding to build and sustain a critical community resource and its community-focused outcomes.
“The Regional Workforce and Child Development Hub is on track to open this fall,” shared Travis Staton, CEO and President of EO. “We’re accepting reservations for K-12 school field trips and the childcare center, which is operated by Ballad Health, is already fielding calls from families who need childcare. With their investment into the Hub, TIF has locked arms with our region, and we are grateful for that commitment to community good.”
Once renovations are complete, the facility’s early childcare education center will serve 300 children annually from ages 0-5. In addition, the campus will be home to Career Commons, which will provide over 30,000 K-12 students across Southwest Virginia with hands-on career simulation. These outcomes are an integral step in alleviating Southwest Virginia’s local childcare crisis while training the region’s youth to obtain quality, well-paying jobs.
About EO Companies
EO Companies (EO) is a Virginia-based 501c3 non-profit organization with a mission to research, pilot, and scale innovative solutions so that communities are thriving and people are well. EO has a 60-year history of developing innovative programs, including the Regional Workforce and Child Development Hub, the Rural Summit, and Ignite Career Commons. EO challenges the status quo and brings positive change to local economies by working with private, public, and philanthropic partners. By prioritizing education, workforce innovation, and wellness, EO strives to guarantee that future generations can meet the demands of a rapidly evolving world and that communities have opportunities to thrive.
