Proposal for creating positive outcomes for Opportunity Zones

Proposal for creating positive outcomes for Opportunity Zones

Recap why Halagard’s solution is rightfully focused on Opportunity Zones

Halagard is a modern capital markets solution. We are focused on helping SMBs access EQUITY capital efficiently and cost-effectively. Our solution is an ideal vehicle for investors to move capital into Opportunity Zones (OZs). Many leaders have stated, significant capital flowing into OZ businesses is the key to the success of OZs. Without our solution, it is doubtful that significant capital will flow into businesses in OZs. The two main reasons capital will be restricted without Halagard is as follows:

Success always begins with a plan to measure outcomes

Ideally, the leadership in both the Executive & Legislative branches will want to measure the outcome of investor efforts in each OZ. Establishing these measurements should be a priority for the new White House Opportunity and Revitalization Council. We believe the information generated by these measurements should be available not only to the above officials but also investors.  Therefore, ensuring all parties interested in OZs success have a standard framework to measure their impact. The SBA, MBDA, NWBC, HUD, other agencies including local and national Economic Development organizations (The Group) all currently have measurements and tools they use to track businesses. The current way The Group manages and collects data creates two primary issues that blocks the creation of a standardized data set for OZs and the ability to measure success.

Our Recommendation for Success

Our recommendation is a partnership between The Group, Halagard and a significant data player like Amazon AWS to create a master database. Each party would bring existing data, to create a new master database focused on OZs. Therefore, solving the data siloing problem. To solve lack of performance data, Halagard would add data related to investments in OZ businesses and their annual performance.  Creating metrics by OZ and business that can measure micro & macro success. Together all parties create the foundation for standardized measurements and analytics of OZ’s.

The way it would work

Part 1 - Building A Master OZ Database

Step 1 - Halagard, in conjunction with The Group, would identify a Pilot OZ. Step 2 - The governmental agencies would bring their respective data together for the pilot creating a comprehensive database of SMBs in the OZ. Amazon AWS or similar coordinates the integration and management of data. Step 3 - The Group would execute an outreach program to each business within the OZ to validate current data and to gather additional data such as business plans, capital needs, capital would be used, usage, number of employees, payroll, etc. Step 4 - The database would be updated, and this would become the baseline for that OZ. All members of The Group would have full access to the data to help with their various missions  

Part 2 – Halagard adding value, business performance data

Halagard would leverage and augment the database built by The Group as follows Step 1 - The data would go into the Halagard system Step 2 - We would work with investors to determine the minimum criteria for businesses to be considered investable within an OZ Step 3 - Halagard performs an in-depth evaluation of the businesses in the Pilot OZ against the criteria, Step 4 - Those businesses which decide to participate would be underwritten and scored by the Halagard process. Step 5 - Halagard decides which businesses move forward and are combined into a securities bundle similar to a mutual fund or ETF. Step 6 - The bundles would be offered to Qualified Opportunity Funds (QOF) following all USA securities regulations Step 7 - One year after the initial sale, the bundles can trade in the Halagard Marketplace like any Security on Wall St.. Thus, creating something desired by all investor’s; liquidity and a secondary market. Step 8 - At the end of every year, each business would provide an annual report. The data would be consolidated by business and bundle creating a national view of the OZ performance. Step 9 - The data from Halagard enables the Executive, Legislature, Agencies and investors to determine what kind of rules, incentives, investments, industries, etc. work best. Once the pilot completes, Part 1 & 2 would be repeated for all 8,761 OZs.

The Future and measuring all small businesses

Once the master database is built for all OZs, The Group can shift their focus to adding data for all Small & Medium businesses to the master database. Being able to measure and analyze SMBs is essential. Why? SMBs makes up nearly 50% of the GDP and employees 6 out of 10 private sector employees. It is critical for Legislative and Executive branches to understand how SMBs are performing during their decision-making.


Our goal at Halagard is to help SMBs grow, increase employment and turbo-charge economic opportunity. Halagard is uniquely built to support the goals of OZ legislation.