Evernorth Rural Ventures Closes $14.3 Million New Markets Tax Credit for Square One
SPRINGFIELD — Evernorth Rural Ventures, a subsidiary of Evernorth, announced 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.
The new facility will create 80 additional childcare slots, including a pioneering 24-hour care program. Additionally, the facility will house administrative, finance, and home-visit teams for the nonprofit and generate 16 full-time, living-wage 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 PeoplesBank, 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, NMTC program director at Evernorth. “We are committed to advancing economic and social development in underserved communities all across the region.”
Square One provides early learning and care to more than 500 children daily and family support services to 1,500 families each year. Nearly 90% of children served come from families living at or below the poverty level. Furthermore, 54% of the families earn less than $15,000 annually, and 83% 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,” Square One President and CEO Dawn DiStefano said. “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 project broke ground in mid-June, and construction is expected to be complete in the summer of 2025.