UB Community Development awarded $65M in NMTC allocation
UB Community Development LLC (UBCD), a community development partner of United Bank, announced today it has been awarded a $65 million New Markets Tax Credit (NMTC) allocation by the U.S. Department of the Treasury.
The award is the result of United Bank’s ongoing commitment to enhancing the economic vitality of low-income communities in Alabama and in Northwest Florida, according to a release. The announcement marks the fourth allocation the company has received. UBCD received three previous NMTC awards from the Community Development Financial Institution (CDFI) Fund totaling $185 million that it has deployed into vital projects in Alabama and Florida.
“At this critical time in Alabama and Florida’s economic recovery, UB Community Development is deeply appreciative of the CDFI Fund’s award of NMTCs to fund business loans in low-income communities in predominantly rural areas,” said Alex Jones, president of UB Community Development.
The New Markets Tax Credit was enacted by Congress in 2000 as a federal effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the capital needed to support and grow businesses, create jobs,and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities.
This $65 million allocation was made possible because of United Bank’s designation as a Community Development Financial Institution (CDFI) and UBCD’s designation as a Community Development Entity (CDE) with a mission to bring economic vitality to rural and low-to-moderate income areas. CDEs, like UBCD, use their authority to offer tax credits to investors in exchange for an equity investment into the eligible projects. With these capital investments, UBCD facilitates loans and investments to businesses and non-profits operating in distressed areas providing lower rates, flexible terms and more flexible features than traditional market loans.
For more information about UB Community Development, or for help with planning your next funding project, contact Jones at (251) 446-6017, email email@example.com or visit www.ubcommunitydevelopment.com.