New Market Tax Credit Program Fuels Continued Growth for IT Support Firm
A conversation with Nick Smarrelli, CEO, GadellNet
GadellNet provides a variety of IT support services to small businesses, primarily to companies in the Midwest. The company is a five-time Inc. 5000 fastest growing company and a three-time “Best Places to Work” winner.
Nick Smarrelli, CEO
St. Louis, MO
What are the biggest challenges you face as a business?
Right from the start, managing growth and financing our expanding infrastructure has been our biggest challenge. This last year, we grew 20%, and in seven years we’ve gone from four employees to 70. Growth is awesome, but it is expensive. Helping fund that growth is something we’ve had to focus on and be pragmatic about. I’ve also found that finding quality talent is our number one task. We have excellent clients, so we work hard to find great people to support them.
How did Enterprise help solve these challenges?
Enterprise is our bank and lending partner, and they have helped us with our overall credit capacity. One of the most beneficial opportunities they brought to the table is the New Market Tax Credit Program. The program encourages revitalization and incentivizes business investment in low-income communities through a federal tax credit. It is innovative, and something we hadn’t taken advantage of before.
What is the impact to your business?
The New Market Tax Credit helped us refinance some higher-priced debt, but most importantly it provided working capital to help facilitate our growth. It helped with everything from equipment purchases, to acquiring technology, to affording staff that helps further our growth. Because we have stronger credit capacity, we are able to be more flexible on client payment terms. We have great clients, but there are always slower payers who impact cash flow, and that unpredictability can be hard. This helps reduce that impact.