August 24, 2020
Qualified Opportunity Funds Raised Estimated $75 Billion for Opportunity Zones, Could Decrease Poverty in OZs by 11 Percent
The White House Council of Economic Advisers (CEA) today released a report on the economic impact of the opportunity zones (OZ) incentive. The Impact of Opportunity Zones: An Initial Assessment estimates that qualified opportunity funds (QOFs) raised $75 billion in private capital by the end of 2019, most of which may not have occurred in OZs without the incentive. This private capital from QOFs represents 21 percent of total annual investment in OZs. The CEA also finds that private equity investment in OZ businesses grew 29 percent compared to businesses in eligible communities not designated as OZs. The report finds that every $1 raised by QOFs under the OZ incentive had a direct forgone federal revenue effect of 15 cents and projects that the capital already raised by QOFs could decrease poverty in OZs by 11 percent, lifting 1 million people out of poverty. The Trump campaign announced that it... Continue reading
Posted Aug 24, 2020 at Innovation Ecosystems
February 14, 2020
Mtech Ventures, Association of University Research Parks and Center for Accelerating Innovation win $50K in SBA funding to support Opportunity Zone innovation
Mtech Ventures, a University of Maryland technology company incubator program, won a $50,000 U.S. Small Business Administration Growth Accelerator Fund competition award to support innovation in federal Opportunity Zones in the Baltimore-Washington metropolitan area.
Through the grant, Mtech Ventures is partnering with the Association of University Research Parks (AURP) and the Center for Accelerating Innovation to organize community-needs roundtables, identify promising innovations, develop entrepreneurs and build awareness of Small Business Innovation Research (SBIR) or Small Business Tech Transfer (STTR) program in low-income census tracts called federal Opportunity Zones (OZ). Maryland has 149 Opportunity Zones, while the District of Columbia has 25. Federal tax incentives for new investments are available in these zones.
"We are truly excited to leverage Mtech’s technology commercialization capabilities and resources to support startups in local Opportunity Zones,” said Mtech Ventures Director Satish Tamboli. “We aspire to make a significant impact in solving some of the most challenging problems in our distressed communities through entrepreneurial leadership and innovation.”
This SBA grant adds to Mtech Ventures’ capabilities to connect innovators, investors and entrepreneurs to the needs of OZ communities to attract more investment capital in facilities and businesses. The initial effort will be geared towards start-ups and projects in Opportunity Zones located in the Baltimore-Washington corridor, especially around anchor institutions, research parks, innovation districts, emerging accelerators and places for growth companies to locate. Funds will not be invested in entrepreneurs’ small businesses or projects.
The SBA Growth Accelerator competition focused on incubators and accelerators that work with high-tech entrepreneurs that are potential Small Business Innovation Research (SBIR) or Small Business Tech Transfer (STTR) program applicants. A total of $3 million was allocated by the SBA to accelerators and incubators across 39 states. Fifteen of the awards, including the Mtech Ventures grant, went to accelerators across the U.S. that support startups, entrepreneurs, and innovation in Opportunity Zones.
Opportunity Zones have the potential to attract new capital in real estate development and investment in technology businesses in the U.S. over the next seven years. The State of Maryland has created its own state incentives and an OZ portal.