Cultiva, a Las Vegas-based manufacturer of proprietary biofilm produce coatings, received a $3.95-million investment through the Nevada New Markets Tax Credit program.
The company received funding from Advantage Capital Partners, a nationwide venture capital group, which was awarded tax credits to invest in businesses located in low-income communities.
Cultiva CFO Heath Philips said the investment will allow the company to move its entire product manufacturing in-house from Oregon to its Las Vegas headquarters, as well as accelerate new product development efforts and promote international expansion.
“These activities will allow Cultiva to grow faster and reach profitability sooner than projected without the funding,” he said.
The Nevada New Markets Jobs Act, which was enacted in 2013, promotes investment among small businesses in distressed communities throughout the state. The goal is to attract large, long-term investors to Nevada’s low-income communities while promoting new expansion and creating jobs.
Cultiva specializes in food-grade biofilm technology known as SureSeal, which extends the marketable shelf life of crops by reducing cracking.
In order to continue operations, Philips said, Cultiva needed to bring the production of its products in-house in order to achieve better quality control, increase productivity and expand product development.
He added that the Nevada New Markets Tax Credit program allowed Cultiva to receive funding it otherwise would not have been able to get because the amount needed was more than traditional banks or Small Business Administration loans were able to provide.
“By funding local small businesses like Cultiva through the Nevada New Markets Tax Credit program, states can stimulate economic growth and thereby create new jobs in areas that need them the most,” Philips said. “Cultiva will now be able to hire the employees and personnel needed to expand our business.”
The investment, according to Philips, has created 21 new manufacturing jobs at Cultiva. The company anticipates adding 30 more manufacturing jobs once its sales targets are hit.