New Square One Facility to Drive Economic Growth in Springfield, MA, creating 80 additional childcare slots, 16 new jobs, and pioneering programming for working families
FOR IMMEDIATE RELEASE: September 6, 2024
CONTACT: Lisa Patlis, (802) 861-3814
[Springfield, MA] – Evernorth Rural Ventures, a subsidiary of Evernorth, is pleased to announce the closing of $14.3 million in New Markets Tax Credit (NMTC) allocation to create a larger, new state-of-the-art facility for Square One, a nonprofit early childhood education and care provider. The NMTC supports the construction of a new building dedicated to early learning classrooms and workforce development programming for families.
This expansion is a vital step in meeting the community’s childcare needs and supporting working families. The new facility will create 80 additional childcare slots, including a pioneering 24-hour care program, making it the only center-based licensed childcare center in South Springfield. Additionally, the facility will house administrative, finance, and home visit teams for the nonprofit and generate 16 quality, living-wage full-time positions, further bolstering the local economy.
U.S. Bank is the investor to Evernorth Rural Ventures’, providing equity to help finance the new facility. The complex financing package also includes a $5.5 million capital campaign, $2 million from the Commonwealth of Massachusetts, $950,000 from the City of Springfield, contributions from Square One, and several other sources. MassDevelopment provided a $6 million tax-exempt bond, furnished through Peoples Bank, to facilitate the project closing.
“Evernorth is proud to be part of this project that provides essential services that families need to overcome poverty and achieve economic stability and mobility, while supporting the long-term growth of the Springfield area,” said Deb Favreau, the NMTC Program Director at Evernorth. “We are committed to advancing economic and social development in underserved communities all across the region.”
Square One provides a range of family-friendly education and support services that are unique to each child and every family served. Since 1883, the agency has provided opportunities for children and families to build the foundation for lifelong learning, to make smart choices, and to grow strong cognitively, emotionally, socially, and physically. Today, Square One provides early learning and care to over 500 children daily; and family support services to 1,500 families each year. Nearly 90 percent of children served come from families living at or below the poverty level. Furthermore, 54 percent of the families earn less than $15,000 annually, and 83 percent of the parents and caregivers are single heads of household.
“We thank Evernorth for sharing in our vision and leading us through the NMTC process with patience and professionalism,” says Square One President & CEO Dawn DiStefano. “We believe this project clearly reflects the collective commitment and the investment needed to close the opportunity gap in our region – providing children with a foundation for long-term success, and economic stability for families and businesses. Through opportunities like the NMTC program, we are investing in the economic future of our community.”
The demographic composition of Square One’s service population reflects the diversity of the surrounding area: 56 percent Latino, 26 percent African American, 11 percent Caucasian, 1 percent Asian, and 6 percent multi-racial. Among parents enrolled in services, 88 percent are among the working poor – employed but needing financial support to survive.
The U.S. Treasury’s New Markets Tax Credit program, which began in 2000, is designed to spur economic development activity in economically disadvantaged communities nationwide. These communities often have good, viable business and economic development opportunities, but limited access to capital. Treasury’s program addresses the capital gap by providing the incentive of a federal tax credit to corporations that invest in a Community Development Entity like Evernorth Rural Ventures.
The project broke ground in mid-June and construction is expected to be complete in Summer 2025.
# # # #
Evernorth Rural Ventures, a subsidiary of Evernorth, is a qualified rural Community Development Entity that uses its New Markets Tax Credit resources to support investment in the economic, environmental, and social well-being of northern New England communities and its regional economies. Funds are used to retain and create quality jobs and essential goods and services by financing key community developments in downtown and village centers and in other concerted community efforts that demonstrate positive impacts to low income persons and communities. Learn more about Evernorth Rural Ventures at www.evernorthus.org/financing-and-investing/evernorth-rural-ventures.
Square One is committed to ensuring that all children and families have the opportunity to succeed at school, at work, and in life by providing educational programs, family support services, health and fitness resources, and a voice in the community. Square One knows that children grow up to become better educated and more successful academically, emotionally and socially when they have high-quality early education, nurturing adults to care for them, and a safe and healthy community in which to live. At the core of everything they do is the belief, confirmed by research, that children who begin learning early become better learners for life. To learn more go to www.startatsquareone.org/
