Parr Instrument Company is a privately held corporation specializing in the design, manufacturing, and sale of laboratory instruments and apparatus. Parr’s focus is on producing equipment for testing fuels and conducting chemical reactions and tests under heat and pressure. Prior to the NMTC financing, Parr Instrument had not expanded in 30 years and therefore faced the challenges of production and administrative capacity limitations, resulting in lagging lead times for customers and hindered future growth.

With an NMTC investment, Parr Instrument was able to acquire and expand into an adjacent facility, alleviating capacity limits and facilitating the growth of product lines. This includes a product line that was previously subcontracted due to operational limitations. The expansion into the adjacent facility allowed for a westward expansion and the construction of a new facility that was deemed unfit for rehabilitation. Furthermore, the expansion enhances sheet metal fabrication, sawing operations, paint, welding and soldering, electrical and special assembly, and testing facility capabilities.

To move forward with this project, Parr sought $20 million in federal allocation from CBKC CDC, L.L.C. and FirstPathway Community Development, LLC and an additional $10 million of Illinois state allocation from CBKC CDC, L.L.C. The NMTC financing was pivotal in the project’s capital stack as the existing facility required substantial upfront capital for modernization and expansion, creating a financing gap. Due to the increase in costs, Parr Instrument Company faced the prospect of seeking properties beyond Moline, irrespective of the Sponsor’s historical ties to the community. The NMTC capital provided the gap financing needed for the project to move forward and was critical to Parr staying in the community.

Completion of the facility creates and retains 110 full-time positions. Further, 77 construction jobs were created as part of the project. Parr Instrument has committed efforts to develop the workforce of the local community by collaborating with educational institutions to place students in manufacturing roles. Accordingly, the NMTCs allowed Parr Instrument to increase its manufacturing capacity, increase employment opportunities, and positively impact the low-income community.