ARE OPPORTUNITY ZONES INVESTMENT GOOD FOR YOU?
Updated: Jun 7, 2020
By: Lee A. Blackman (Managing Director)
- An opportunity zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. -
Artist: Francine S. Blackman
Economics over time came into existence from the evolution of human activities in farming, fishing, raising of animals for our consumption, the need for shelter, warmth, comfort, barter trading, skilled labor and other daily basic human needs.
Despite the many conspiracies of today, we cannot refute that mankind on whole is now at its highest point in human civilization, religion and economics throughout the planet.
Being such an advanced civilization with rich history, generations of knowledge, advanced technology and more, we still tend to ignore and disregard the fact that without the creation of employment, our economic output (GDP) will continue downward with less spending from consumers.
Government, central banks, large corporations and financial institutions all need to focus on achieving a 100% employment rate knowing that they are the main regulators, participants and financiers of the economy.
How do we get the sole proprietor, entrepreneur, small and mid-size corporate company financed when most of them have small reserves of security if any at all, no collateral and steady cash flow especially now after COVID-19 and lock downs?
Most of the aforementioned entities are formed by corporate professionals who have been released from larger corporations, may not be able to secure employment because smaller corporations will not hire them, and or may have made the decision to establish their own product & service business. In addition, we cannot also exclude professionals seeking employment back into the labor market because at the end of the day we all deserve the same right and opportunity to stimulus finance.
One traditional, proven and supported economic investment strategy that has been designed to create investment finance that is sure to work is ‘Opportunity Zone Investments.’ Opportunity Zone investment are backed by most developing countries, states, islands and or territory’s government.
Opportunity zone investment policy should be further revised by our government and central bank making stimulus available to sole proprietors, entrepreneurs, small and mid-size corporate companies. Our banks and credit facilities always request security from applicants and with stimulus in the form of a grant to these community based businesses; they are able to invest in themselves increasing not only the business's enterprise value, however also their communities.
Investments into economically-distressed communities and through civil based large, medium or small corporate businesses, not excluding in sustainable developed targeted new investments, under certain investor terms and conditions may be eligible for preferential tax treatment. If this is not the case in your country, state, island and or territory then it is worth a debate with your elected representatives especially after this massive disproportion of finance the COVID-19 pandemic has caused.
Aruba Port City Project
Fund and asset managers, investment companies, private and public financial institutions, top corporations and governments continue to acknowledge that the employment rate needs to be increased, however, they are not directly diverting enough or any capital at all into opportunity zone businesses so that community become a more attractive and profitable investment to large corporations.
If we do nothing then economic distressed in communities will continue to increase and large firms will default on repaying stimulus finance resulting in lost contribution to the GDP and stagnation for all.
LET US MAKE IT HAPPEN AGAIN, - As a young traditional, unique and dynamic market maker in capital finance, investment and banking industries with a proven successful track record, Imporio Consultants Limited is here to do its share.
Our corporate portfolio is comprised of local (St. Kitts & Nevis), Caribbean region and international top rated private-public, franchise and industrial ‘Opportunity zone’ investments. We have few investments listed in our Investment Exchange and is ready, willing & able to arrange capital financing for asset and or investment projects.
We are always open to work with directors, corporate executives, asset & fund managers and project developers in regarding capital and opportunity zone investment.
I can only imagine the amount of other great ideas, solutions and advice that you as well as other industry professionals and academics may have, so please feel free to comment and share.
Let us talk about solutions!