Mascoma Community Development awards $15M in New Market Tax Credits to Southern Minnesota Beet Sugar Cooperative

RENVILLE and CLARA CITY, MINNESOTA (December 16, 2025) – Mascoma Community Development (MCD) today announced the successful closing of a New Markets Tax Credit (NMTC) financing transaction in support of Southern Minnesota Beet Sugar Cooperative (SMBSC). The financing will support a site expansion of an existing sugar production facility in rural Renville, Minnesota, and new equipment at SMBSC’s beet pile site in rural Clara City, MN. The project is expected to increase the efficiency, quality, and capacity of sugar production; boost value for member-farms; and support economic growth within low-income communities across nearly two dozen counties statewide.

Specifically, the project will enable SMBSC to upgrade equipment and modernize key pieces of the facility, increasing production capacity and improving output for local member-farms while retaining 470 quality agricultural jobs. According to independent research conducted by the University of Minnesota Extension, SMBSC’s annual economic impact in Minnesota is estimated at $931.1 million, supporting 5,290 jobs and generating $255.6 million in labor income. The research also notes that the increased value resulting from the project is expected to directly benefit more than 20 counties and provide significant tax revenue for the State of Minnesota.

“MCD is pleased to provide NMTC funding to support the Southern Minnesota Beet Sugar Cooperative project and its member-farmers who contribute to sustainable food production,” said Tad Atwell, Chief Operating Officer of MCD. “This project offers an opportunity to catalyze economic opportunity through a cooperative model, making a positive impact on farmers’ lives and rural communities alike in the state of Minnesota.” MCD is a Community Development Entity (CDE) established by Mascoma Bank that creates impactful jobs in highly distressed low-income rural and minor-urban communities. In addition to rural industrial and manufacturing projects, MCD targets downtown redevelopment initiatives that revitalize low-income communities and expand access to essential services.

“We greatly appreciate MCD’s support for our cooperative and our work producing some of the lowest-cost and highest-quality sugar in the U.S., while also boosting local farms and supporting good Minnesota jobs,” said Paul Fry, President and CEO of SMBSC. “Opportunities like this allow us to invest in our communities and facilities so they continue to operate well into the future, enabling our farmers to remain a vital part of the state’s economy while supplying sugar across the U.S.”

Founded in 1972, SMBSC is a farmer-owned cooperative with more than 450 shareholders across 17 counties in west-central and southern Minnesota. Its shareholders operate small- to medium-sized, family-owned farms, and the cooperative supports local low-income families and communities through quality job opportunities and sustainable food production. SMBSC is the lowest-cost sugar producer in the U.S., providing above-average profit margins to its member-farmers through a cooperative ownership model that ensures agricultural advancements directly benefit all members. SMBSC produces refined and liquid sugar and co-produces dried beet pulp, molasses, and separator molasses soluble. The project will increase quality, capacity, and productivity while reducing unusable byproducts and improving energy efficiency, aligning with SMBSC’s mission to operate sustainably, ethically, and innovatively.

Broadstreet, a subsidiary of the Local Initiatives Support Corporation, and Midwest Minnesota Community Development Corporation (MMCDC) are co-allocatees of NMTC funding for the project. “Too often, projects that can expand local economic activity and jobs stall due to a lack of flexible, affordable financing,” said Wendy Weiss, Senior Vice President at Broadstreet. “NMTCs help fill that gap, and we are proud to support the cooperative’s expansion with $4 million in LISC NMTCs and $8.6 million from our Morgan Stanley Rural Fund. The increased production spurred by the project will benefit the regional economy through a strong multiplier effect.”

MCD also reported that the project enables an additional $75,000 grant from MCD to CDFI partner MMCDC, headquartered in Detroit Lakes, MN. This funding will help address the childcare shortage in Renville County, reinforcing MCD’s commitment to supporting CDFIs that strengthen the communities they serve.

About Mascoma Community Development

MCD received its NMTC Allocation from the Community Development Financial Institutions Fund (CDFI Fund), a branch of the U.S. Department of the Treasury. MCD uses its allocation to provide flexible, low-cost financing to businesses nationwide, with a focus on creating impactful jobs in highly distressed low-income communities.

About Mascoma Bank

Mascoma Bank is a $2.9 billion mutual community bank with 26 branches and two loan production offices across Northern New England and is the controlling entity of Mascoma Community Development. With a 126-year history of serving rural and minor-urban communities, Mascoma Bank is a Certified B Corporation® and member of the Global Alliance for Banking on Values. Member FDIC and Equal Housing Lender. For more information, visit https://mascoma.bank.