Cleveland, OH – Over the weekend Greater Cleveland Partnership
launched Opportunity CLE, Northeast Ohio’s new national Opportunity Exchange platform. Currently, Opportunity CLE is 1 of only 11 such platforms nationwide.
Excitingly, Socent Studios was selected as 1 of 21 ventures among thousands of submissions to launch with Opportunity CLE, greenlighting us as an official Opportunity Zoned (OZ) venture. Our investment opportunity is now accessible on Northeast Ohio’s first Opportunity Exchange.
A significant deal differentiator and in addition to our impact, Socent can now offer its investors access to a QOF investment vehicle and the incredible tax benefits provided by Qualified Opportunity Funding.
Supported by partnerships with the Fund for our Economic Future and the Urban Institute, Opportunity CLE's platform opens up tremendous opportunity for local founders in Northeast Ohio to access investment capital not previously available to grow their businesses, create jobs, develop our communities, and scale new economy.
Per the EDA, Opportunity Zones were created under the 2017 Tax Cuts and Jobs Act, signed into law by President Donald J. Trump on December 22, 2017, to stimulate economic development and job creation.
Per the IRS, equity that is held by an investor in an OZ venture:
- Longer than 5 years, investors receive a 10% exclusion of the deferred gain on their investment;
- More than 7 years, they receive a 15% exclusion; and
- After 10 years, the investor does not owe federal income taxes on the fund's appreciation by the date of sale.
Additional OZ investor benefits are anticipated to follow this year.
Congratulations to our friend and existing Socent investor, Patrick Russo. His venture OnStation was also selected as 1 of only 21 to launch Northeast Ohio's Opportunity Exchange. Birds of a feather.
We thank all of those involved at Opportunity CLE for making this exciting and potentially transformative greenlighting possible for us and other promising ventures in Northeast Ohio.
Special thanks to Vince Adamus and Eric Hughes at Greater Cleveland Partnership.